Medicaid Prescription Drug Coverage

Medicaid Prescription Drugs

The Medicaid Drug Rebate Program is a program in the United States that was created by the Omnibus Budget Reconciliation Act of 1990 (OBRA'90). It requires that drug manufacturers have a national rebate agreement with the Secretary of the Department of Health and Human Services (HHS) in order for states to receive Federal Medicaid coverage of their products.

In 2007, 550 pharmaceutics companies participated in the Medicaid Drug Debate Program and 49 states in addition to the District of Columbia supply drugs under the Medicaid Drug Rebate Program. In order for manufacturers to be eligible for Medicaid coverage a rebate agreement must be signed with Centers for Medicare and Medicaid Services.

The Medicaid Drug Utilization Review (DUR) Program was created by the Omnibus Budget Reconciliation Act (OBRA) of 1990. The main emphasis of the program is to promote patient safety by an increased review and awareness of outpatient prescribed drugs.

States were encouraged by enhanced federal funding to design and install point-of-sale electronic claims management systems that interface with their Medicaid Management Information Systems (MMIS) Operations.