New Deadlines for Medicaid Drug Pricing Plan Give Extra Time to Companies and States

Government health officials recently pushed back several important dates tied to a new policy that could lower prescription drug costs under Medicaid. Instead of finishing applications by late spring, drug manufacturers now have more than a month extra to join the program. The original deadline had been set for April 30, but officials moved it to June 11 to allow more companies time to check rules and fill out paperwork. Similar delays affected other key dates, giving both states and drugmakers breathing room through the summer. The policy, introduced last fall, is meant to let Medicaid programs in each state buy certain medicines at prices already negotiated in other wealthy countries. That might sound like a fresh way to cut health-care spending, yet it raises questions about how far prices can truly drop without cutting drug maker profits. Smaller companies, which often have fewer staff to handle applications, stand to benefit the most from these extensions. They may now have a better shot at qualifying if they produce at least one medicine already covered by Medicaid rebates.For states, the extra months could also mean more time to study the program and decide whether to participate. The original cutoff for states was July 31; now deadline is September 10. Officials in charge of Medicaid budgets will need to compare the potential discounts against their current drug spending. Some may rush to join, while others could watch how the first group of adopters fare before making a final call. The plan itself hinges on linking U. S. drug prices to those paid in a handful of other developed nations. Supporters argue this brings prices closer in line with what other governments negotiate through bulk purchasing and price controls. Critics, however, worry that slashing prices could discourage investment in new medicines. Either way, the latest delays give all sides more time to prepare for a shift that could change how medicines are priced nationwide.