Over the past few years the Legislature has enacted several prescription drug cost control initiatives to curtail inappropriate prescribing, detect fraud, reduce prescription prices, and increase drug manufacturer rebates.
However, continued rapid growth in Medicaid spending for prescription drugs is a major factor driving projected deficits in the Medicaid budget in Fiscal Years 2000-01 and 2001-02. Most of the growth is due to an increase in the average cost of prescriptions driven primarily by doctors switching to higher-cost drugs.
Despite obtaining lower retail drug prices than other state Medicaid programs, Florida's prescription drug costs per recipient are among the highest.
To help control the rapid increases in the cost of Medicaid prescriptions and to promote effective drug therapies for the least cost, we recommend that the Legislature authorize the Agency for Health Care Administration to develop a mandatory preferred drug list and negotiate supplemental rebates,
direct the agency to develop and implement strategies to encourage compliance with using the preferred drug list, and
require the agency to competitively bid contracts for Medicaid pharmacy networks.
These steps could save up to $306.1 million annually in Medicaid prescription drug costs, of which $113.1 million would be state general revenue savings.

Inflated Pricing and Confidential Information Prevent Medicaid from Ensuring Lowest Prescription Drug Prices
Report 06-07 January 2006
Progress Report: Changes to Medicaid Preferred Drug List Requirements and Competitive Bidding Pharmacy Contracts Could Save an Additional $86.6 Million in 2003-04
Report 03-27 April 2003
Legislative Options for County Share of Medical Nursing Home Costs
Report 03-11 February 2003
Expected Medicaid Savings Unrealized; Performance, Cost Information Not Timely for Legislative Purposes
Report 01-61 November 2001

Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.