As recommended in our 2001 report, the Legislature directed the Agency for Health Care Administration to establish a mandatory preferred drug list and to negotiate supplemental rebates. During 2001-02, the agency developed procedures for and phased in a Medicaid preferred drug list. However, the agency has not implemented our recommendation to competitively bid for pharmacy services.
Based on our analysis of the 50 most expensive therapeutic categories, the preferred drug list saved Florida $81 million in 2001-02 in combined state and federal funds. The highest percentage of savings came from drug classes containing only drugs in which manufacturers gave supplemental cash rebates. The Legislature could save an additional $64.2 million in 2003-04 by restricting supplemental rebates to only cash rebates.
We continue to recommend that the agency competitively bid pharmacy networks, which would save an estimated $22.4 million in 2003-04 as well as make it easier to monitor and control pharmacy error, abuse, and fraud.

Inflated Pricing and Confidential Information Prevent Medicaid from Ensuring Lowest Prescription Drug Prices
Report 06-07 January 2006
Progress Report: Medicaid Disease Management Initiative Has Not Yet Met Cost-Savings and Health Outcomes Expectations
Report 04-34 May 2004
Medicaid Disease Management Initiative Sluggish, Cost Savings Not Determined, Design Changes Needed
Report 01-27 May 2001
Growth in Medicaid Prescription Drug Costs Indicates Additional Prudent Purchasing Practices Are Needed
Report 01-10 February 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.