4 September 2018 - States have often been an incubator for innovative ideas in health technology pricing and reimbursement. 

In another example of necessity being the mother of invention, Medicaid expansion coupled with rising drug costs have forced state Medicaid authorities to seek new payment mechanisms that would contain drug costs. 

In June of this year, the Centers for Medicare and Medicaid Services gave the green light to Oklahoma to pursue a Medicaid drug pricing initiative. Specifically, CMS allow the state to negotiate rebates through value-based purchasing agreements. These rebates would be in addition to the federally mandated rebate; greater of 23.1% of the average manufacturer price (AMP) or AMP minus the best price provided to most purchasers. Oklahoma’s Medicaid program will be the first to negotiate prescription drug prices based on how well the drugs work in practice, and in particular how well they’re adhered to by patients.

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