No Closed Formularies In Medicaid Without Forgoing Rebates, CMS Tells Massachusetts

US agency decision is a relief to manufacturers worried that the Massachusetts plan would lead to reduced drug access and heavier rebate burdens. 

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The Centers for Medicare and Medicaid Services has denied a waiver request by the state of Massachusetts that would have allowed its Medicaid program to adopt a closed formulary to increase its leverage in manufacturer negotiations and lower prices.

In a June 27 letter to MassHealth Assistant Secretary Daniel Tsai, CMS said it would be open to allowing the...

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