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Senate panel hears bill to let Medicaid favor lower net-cost brand drugs over generics
Summary
A Senate committee heard testimony on SB 119, which would let New Hampshire Medicaid prefer brand-name drugs when net cost after rebates is lower than generic alternatives; Medicaid officials said the change could save the state money without changing patient benefits.
Sen. James Gray introduced Senate Bill 119 on behalf of the sponsor, saying the proposal would give the Medicaid program flexibility to prefer the lowest net-cost drug after rebates, even if that drug is brand-name.
The bill would allow Medicaid to choose the drug option with the lower net cost once manufacturer rebates and other adjustments are taken into account. Henry Littman, the state's Medicaid director, told the Senate Health and Human Services Committee that the proposal would align Medicaid purchasing with net-cost realities and allow the program to maintain a stronger, single pharmacy drug list across managed care organizations.
"Generics often are cheaper,…
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