Alabama Medicaid Initiates Acquisition Cost Reimbursement
As of September 22, 2010, the state of Alabama began reimbursing for retail pharmacy dispensed drugs based on acquisition-cost pricing. Like a small number of other payers, Alabama appears to have realized that a “pass-through” of the actual costs of drugs, plus a fixed rate dispensing fee, is a far less expensive method to pay for drugs than allowing vendors to make a “profit spread” on each drug dispensed, which is the payment method allowed by virtually all PBM/client contracts in today’s marketplace.
Our consulting firm can compare Alabama’s costs to those you are currently paying to determine the extent to which you are likely overpaying your PBM for retail dispensed drugs. The comparison is likely to be quite telling.