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Progress Report: Changes to Medicaid Preferred Drug List Requirements and Competitive Bidding Pharmacy Contracts Could Save an Additional $86.6 Million in 2003-04, Report No. 03-27, April 2003
 
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  • As recommended in our 2001 report, the Legislature directed the Agency for Health Care Administration to establish a mandatory preferred drug list and to negotiate supplemental rebates.  During 2001-02, the agency developed procedures for and phased in a Medicaid preferred drug list.  However, the agency has not implemented our recommendation to competitively bid for pharmacy services.
  • Based on our analysis of the 50 most expensive therapeutic categories, the preferred drug list saved Florida $81 million in 2001-02 in combined state and federal funds.  The highest percentage of savings came from drug classes containing only drugs in which manufacturers gave supplemental cash rebates.  The Legislature could save an additional $64.2 million in 2003-04 by restricting supplemental rebates to only cash rebates. 
  • We continue to recommend that the agency competitively bid pharmacy networks, which would save an estimated $22.4 million in 2003-04 as well as make it easier to monitor and control pharmacy error, abuse, and fraud.

Which Government Program Summaries contain related information?

Medicaid Health Care Services
Agency for Health Care Administration

What other OPPAGA-related materials are available?

  • Report No. 06-07 Inflated Pricing and Confidential Information Prevent Medicaid from Ensuring Lowest Prescription Drug Prices, published in January 2006.
  • Report No. 04-34  Progress Report: Medicaid Disease Management Initiative Has Not Yet Met Cost-Savings and Health Outcomes Expectations, published in May 2004.
  • Report No. 01-27  Justification Review: Medicaid Disease Management Initiative Sluggish, Cost Savings Not Determined, Design Changes Needed, published in May 2001.
  • Report No. 01-10  Justification Review: Growth in Medicaid Prescription Drug Costs Indicates Additional Prudent Purchasing Practices Are Needed, published in February 2001.

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
e-mail address: oppaga@oppaga.fl.gov


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