Budget Amendment ID: FY2018-S3-357

EHS 357

MassHealth Bulk Purchasing

Mr. Boncore moved that the proposed new text be amended by striking out section 92 and inserting in place thereof the following new section:-

SECTION 92. The office of Medicaid shall provide a report on potential cost savings for prescription medications by joining a multistate Medicaid bulk purchasing consortium. The report shall include: (i) an analysis of increased efficiency in the receipt of discounts through participation in a multistate Medicaid bulk purchasing consortium; (ii) the estimated cost savings related to joining a multistate Medicaid bulk purchasing consortium; (iii) the estimated administrative savings or other increased efficiencies related to joining a multistate Medicaid bulk purchasing consortium; (iv) opportunities for managed care organizations to receive rebates or discounts; and (v) a review of any identified alternative approaches to multistate Medicaid bulk purchasing consortiums that provide cost savings relative to prescription medications.  In assessing any 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 senate and house of representatives, 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, 2018.