Section 98 MassHealth Prescription Drug Purchasing Alternatives Report

The office of Medicaid shall investigate and provide a report on potential cost savings for prescription medications by pursuing new purchasing approaches. The investigation shall include, but not be limited to, an examination of the feasibility, advisability and potential cost savings of: (i) joining a Medicaid multistate prescription drug bulk purchasing consortium; (ii) identifying alternate financing mechanisms; and (iii) entering into alternative payment methods, including value-based purchasing arrangements. The report shall include: (a) an update on existing supplemental rebates; (b) recommendations to increase the amount of supplemental rebates received; (c) estimated cost savings related to joining a Medicaid multistate prescription drug bulk purchasing consortium; (d) estimated administrative savings or other increased efficiencies related to joining a Medicaid multistate prescription drug bulk purchasing consortium; (e) opportunities for managed care organizations to receive similar rebates or discounts; (f) estimated cost savings related to negotiating value-based purchasing agreements with drug manufacturers; (g) estimated administrative savings or other increased efficiencies related to negotiating value-based purchasing agreements with drug manufacturers; and (h) an analysis of cost savings approaches adopted by other states. The office shall file the report with the clerks of the senate and house of representatives, the joint committee on health care financing and the senate and house committees on ways and means not later than March 1, 2020.