Texas Health and Human Services Commission to modernize Medicaid program

WASHINGTON — The agency that operates Texas’ state Medicaid program is proposing to save costs by administering prescription drug benefits the same way private insurers do, drawing praise from a trade group representing the country’s pharmacy benefit managers.

The Texas Health and Human Services Commission, which runs the program, said the change would save state taxpayers $82 million. Similar changes have been proposed in New York and New Jersey.

“Texas shouldn’t pay more for Medicaid drug benefits than private insurers and Medicare,” Pharmaceutical Care Management Association president and CEO Mark Merritt said. “Currently, the program uses fewer generic drugs and pays drug stores more than triple the fees that Medicare or private insurers pay. By modernizing Medicaid drug benefits, Texas will save millions without cutting benefits to those in need.”