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Bill would let Medicaid buy lower-net-cost brand drugs and use standing orders for select over‑the‑counter items
Summary
Senate Bill 119 would let the Medicaid program substitute a national brand when its net price (after rebates) is lower than the generic and permit standing orders for certain over-the-counter products to be billed to Medicaid; DHHS estimated multimillion-dollar general-fund savings.
Senator James Gray introduced Senate Bill 119 with a simple analogy: if a national brand is cheaper than a store brand, buy the cheaper product. Department witnesses expanded the policy rationale to Medicaid pharmacy management.
Henry Littman, State Medicaid Director, told the committee current law requires the program to purchase a preferred (store/generic) product even when a brand's net price is lower after…
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