Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

Medicaid Reform: Oversight to Ensure Beneficiaries Receive Needed Prescription Drugs Can Be Improved; Information Difficult for Beneficiaries to Locate and Compare

Report 08-55, September 2008




Report Summary

  • Medicaid Reform capitated health plans have more flexibility in developing their preferred drug lists than do traditional Medicaid plans. Although the Agency for Health Care Administration expects plan beneficiaries to have access to the same drugs that would be available to them under traditional Medicaid fee-for-service, it relies on plans' assurances that they will provide the drugs needed by their beneficiaries. While the agency has some processes to identify problems beneficiaries experience related to receiving drugs, oversight can be improved. Our analyses showed that Reform capitated plans' preferred drug lists do not contain all of the drugs or therapeutic classes of drugs available through Medicaid fee-for-service. While not listing a drug does not necessarily mean the plan will not cover the drug, beneficiaries may have to go through additional steps such as obtaining prior authorization or step therapy before they can receive the drug.
  • Although obtaining information about prescription drug coverage is important to many Medicaid beneficiaries, it is difficult for them to locate and compare Reform plans' drug offerings and prior authorization requirements. To address this issue, the agency has established a special needs unit to help beneficiaries determine which plans cover the drugs they need. In addition, the agency is developing an electronic tool that choice counselors can use to help beneficiaries compare prescription drug coverage among the plans.


Related Reports
  1. Medicaid Reform: Legislature Should Delay Expansion Until More Information Is Available to Evaluate Success
    Report 09-29 June 2009
  2. Medicaid Reform: Reform Provider Network Requirements Same as Traditional Medicaid; Improvements Needed to Ensure Beneficiaries Have Access to Specialty Providers
    Report 08-64 November 2008
  3. Medicaid Reform: Risk-Adjusted Rates Used to Pay Medicaid Reform Health Plans Could Be Used to Pay All Medicaid Capitated Plans
    Report 08-54 September 2008
  4. Medicaid Reform: Choice Counseling Goal Met, But Some Beneficiaries Experience Difficulties Selecting a Health Plan That Best Meets Their Needs
    Report 08-46 July 2008
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
social services, health, human services; Medicaid, Medicaid reform, managed care, Health Maintenance Organization, HMO, Provider Service Network, PSN, fee-for-service, FFS, waiver, PDL, prescription drug list, prescription drug, prior authorization