Area lawmaker proposes list of preferred drugs

JEFFERSON CITY, Mo. -- With an eye to saving the state millions of dollars, lawmakers are studying a plan to place certain medications on a list of preferred prescription drugs for Medicaid recipients.

Rep. Pat Naeger, R-Perryville, said patients would be encouraged to take the lower-priced versions of medications that would be on the list.

Naeger presented his plan Monday during House and Senate negotiations on the $19 billion budget for the fiscal year that starts July 1.

State Auditor Claire McCaskill, in a report last year, said adoption of a preferred prescription plan could "help control drug costs while not placing program recipients at risk."

Naeger said his plan wouldn't prohibit patients from getting more expensive drugs, although "there might be some more paperwork or hurdles to get the higher priced drugs."

Budget negotiators have frequently looked for cuts in the Department of Social Services budget, which makes up more than one-quarter of the state's expenses and has been steadily growing.

For example, the Medicaid pharmacy appropriation alone rose from $598 million last year to $744 million in the current year.

While prescription prices rise each year due partly to inflation, the state's prescription costs have been rising at a rate higher than most other expenditures, Naeger said.

$30 million savings

Naeger's plan would limit the increase to 4 percent each year.

That could save the state $30 million for next fiscal year.

In future years, the state Department of Social Services estimates the program could save $50 million annually, Naeger said.

A few states have already adopted such plans, with savings ranging from an estimated $80 million to $150 million, according to Naeger.

In Florida, drug makers seeking to be considered for the list must give the state a 10 percent rebate in addition to the average 15 percent rebate they offer under federal guidelines. Patients must have special approval for prescriptions not on the list.

The Social Services funding bill is HB1111 (Green).