CMS approves Oklahoma proposal for value-based Medicaid agreements with drug manufacturers
CMS has issued an approval to Oklahoma to negotiate value-based supplemental rebate agreements directly with drug manufacturers, which could produce extra rebates for state, should clinical outcomes not be achieved. It's the first state approval from CMS.
“Oklahoma’s plan for value-based drug contracts is an important example of how states can innovate to bring down drug costs,” HHS Alex Azar said in a prepared statement. “The Trump administration is committed to giving states the flexibility they need to make healthcare more affordable, and strongly supports innovations like value-based purchasing for prescription drugs.”
Under the approved amendment to Oklahoma’s Medicaid plan, both the state and drug manufacturers will be able to agree on benchmarks based on health outcomes as well as the populations for which the benchmarks will be measured.
“President Trump is committed to lowering prescription drug prices and working with states in their pursuit towards innovative state health plans. We want to ensure we are giving states all the tools they need to better negotiate with manufacturers,” said CMS Administrator Seema Verma, MPH. “We applaud Oklahoma’s proposal for a state-plan amendment, which is an innovative approach to reform how we pay for prescription drugs and will lead to better deals for our beneficiaries and our program.”
As a senior news writer for TriMed, Subrata covers cardiology, clinical innovation and healthcare business. She has a master’s degree in communication management and 12 years of experience in journalism and public relations.