CMS will allow Oklahoma to negotiate value-based supplemental rebate agreements directly with drugmakers, the first-ever approval of its kind for Oklahoma's Medicaid program.
Here are four things to know about the amendment:
1. CMS said the approval could produce extra rebates for Oklahoma, as the payment of a drug will be based on its effectiveness and outcomes.
2. Under the approved amendment to Oklahoma's Medicaid plan, the state and each drugmaker can jointly agree on benchmarks based on health outcomes. They can also agree on the specific populations for which the outcomes-based benchmarks will be measured and evaluated.
3. Nearly all states have the authority to negotiate supplemental rebate agreements with drug makers that are at least as much as those outlined in Medicaid's national drug rebate agreement.
4. "Oklahoma's plan for value-based drug contracts is an important example of how states can innovate to bring down drug costs," HHS Secretary Alex Azar said in a statement. "The Trump Administration is committed to giving states the flexibility they need to make healthcare more affordable, and strongly supports innovations like value-based purchasing for prescription drugs."
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