Budget Amendment ID: FY2016-S3-902

EHS 902

Report on MassHealth Bulk Purchase of Prescription Medications

Messrs. Rush and Joyce moved that the proposed new text be amended by striking out section 98 and inserting in place thereof the following section:-

“SECTION 98. The office of Medicaid shall investigate and provide a report on potential cost savings for prescription medications including, but not limited to, the feasibility of joining a Medicaid multistate prescription drug bulk purchase consortium and pursuing new supplemental rebates from prescription drug manufacturers.  The report shall include: (i) an update on existing supplemental rebates; (ii) recommendations to increase the amount of supplemental rebates received; (iii) estimated cost savings related to joining a Medicaid multistate prescription drug bulk purchase consortium; (iv) estimated administrative savings or other increased efficiencies related to joining a Medicaid multistate prescription drug bulk purchase consortium; and (v) opportunities for managed care organizations to receive similar rebates or discounts, and (vi) an assessment of the potential impact of potential cost savings initiatives on patient access to innovative medicines.  In assessing potential cost savings for prescription medications, the report shall consider cost savings that may result from the utilization of innovative medications including, but not limited to, decreased or avoided hospital stays and reduced long-term chronic care costs.  The office shall file the report with the clerks of the house of representatives and senate, the chairs of the joint committee on health care financing and the house and senate committees on ways and means not later than February 1, 2016.”