Drug companies will have to pay state get on state list
Few of the details of New York’s Medicaid cost-control program are provided in the story, but I’m concerned about the way the program is described. Specifically, if this really is a pay (or, more precisely, rebate) to play program, there is a good chance for abuse. The amounts at stake are high enough to tempt regulators and product managers responsible for getting their products on the preferred Medicaid list to circumvent the rules. Doctors and their patients will bear the brunt of any misdeeds. Although industry doesn’t much like the idea, it would be much better for industry in the long-run if state governments were permitted to negotiate over Medicaid drug acquisition costs directly, eliminating the current rebate system and proposed patches like New York’s. But then when did industry leaders ever come together to support proactively any effort that would benefit the industry in the long run?
