Medicaid Managed Care Prescription Drug Carve-Out Bill Passes Senate Health Committee on Monday, September 14th
The bill requires the Department of Human Services (DHS) to transition Medicaid prescription drug services from a managed care to a fee-for-service (FFS) delivery system, and provides for the option of procurement by the State of a single pharmacy benefits manager (PBM) to administer those FFS Medicaid benefits or administration of the program by the State fiscal agent.
The transition to a FFS delivery system is expected to generate significant prescription drug savings under the Medicaid program due to lower overall spending and a reduction in program administration costs. West Virginia’s Medicaid agency implemented a similar transition in July 2017, anticipating a $30 million savings for the state. In March 2019, the West Virginia Bureau for Medical Services released a report showing actual savings of $54.4 million to the state Medicaid program for the first year of the carve-out.
We strongly support the ability of NJ Medicaid to administer a FFS program through the state fiscal agent. Passage of the bill is a positive step in the right direction, and we are very pleased to report it passed committee on Monday. Stay tuned for further information.
Senator Vitale Introduces Measure to Allow Pharmacists to Administer COVID19 Vaccines
Senator Joseph Vitale, Chair of the Senate Health and Human Services has introduced a measure to provide for pharmacist administration of the COVID19 Vaccines once approved. The bill, S2889 has been introduced and assigned to the Senate Health and Human Services Committee. We will be seeking amendatory language, and will keep you informed as the process continues.
DCA Issues Summary of CDS Prescribing Guidelines during COVID19
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