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There is a relatively painless way for the State of Utah, through its overburdened Medicaid program, to save millions of dollars in prescription drug costs.
Implement a preferred drug list, or PDL!
Here, essentially, is how it would work: The state would offer the manufacturers of certain drugs, the opportunity to be included on a PDL if the drug manufacturer would offer the state a sufficient price rebate for each prescription purchased. Physicians, then, would be encouraged to prescribe PDL medications for their Medicaid patients.
Other states are doing it and it is working well. For example, Florida, reportedly, has saved a half-billion dollars over two years by using a PDL and other similar incentives.
KSL believes Utah ought to seriously consider joining the PDL movement, as long as adequate safeguards can be put in place to assure Medicaid patients can get the drugs they need, even if not on the PDL.
Tomorrow, members of the legislature’s interim Joint Executive Appropriations Committee will hear a proposal on a preferred drug program from the Utah Department of Health. We hope committee members listen with supportive attention.
With prescription drug costs continuing to spiral out of control, KSL believes every reasonable effort should be undertaken to save Utah’s taxpayers unnecessary and excessive expenditures.
