MEDICAID DRUG REBATE PROGRAM NOTICE on Value Based Purchasing (VBP) Arrangements for Drug Therapies using Multiple Best Prices


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Today, the Centers for Medicare & Medicaid Services (CMS) released a Medicaid Drug Rebate Program (MDRP) notice for participating drug manufactures and a notice for states that provides technical guidance for Value Based Purchasing (VBP) Arrangements for drug therapies using multiple best prices.

Beginning on July 1, 2022, states will be able to take advantage of certain VBP arrangements for drugs that will be reported to CMS by manufacturers. These arrangements will consist of additional rebates or price concessions that states may be able to earn based on the drug’s clinical outcomes in Medicaid beneficiaries. This new authority was finalized by CMS in a final rule published December 31, 2020, entitled: Medicaid Program; Establishing Minimum Standards in Medicaid State Drug Utilization Review (DUR) and Supporting Value Based Purchasing (VBP) for Drugs Covered in Medicaid, Revising Medicaid Drug Rebate and TPL Requirements.