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TPA Submits Cost-Saving Suggestions for Medicaid Prescription Drugs

Friday, September 13, 2019   (0 Comments)
Posted by: Brian Sparks

Texas HHSC logoThe Texas Pharmacy Association submitted a letter September 11, 2019 to the Texas Health and Human Services Commission (HHSC) Vendor Drug Program (VDP) in response to the agency's request for innovative strategies to achieve cost savings for Medicaid prescription drugs. VDP has been charged with evaluating strategies and submitting a report by September 1, 2020.

TPA's letter noted that pharmacists are the most accessible healthcare providers and recommended that Texas Medicaid can effectively control costs by focusing on transparency, oversight and accountability, medication therapy management (MTM), and value-based payment and alternative payment models. "Transitioning prescription drug payments to a more real-time pricing benchmark with payment methodologies based on actual acquisition costs and professional dispensing fees bearing a relation to true economics of the process is the most transparent and cost-effective model," TPA wrote.

The Association also said that HHSC must increase auditing and oversight of PBMs’ administration of the prescription drug benefit, citing the state’s recent Molina/Caremark Office of Inspector General report as well as issues found in other states. Additionally, with better medication adherence, prevention and access to and support for primary and chronic care, TPA explained how pharmacists can help to eliminate the major healthcare costs that come with hospitalizations, emergency room visits and poorly managed chronic disease.


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