GLEN ALLEN, Va.--(BUSINESS WIRE)--April 22, 2004-- Michigan, Vermont, New Hampshire, Nevada, Alaska combine efforts to reduce Medicaid Pharmacy Costs
First Health Services announced today the Centers for Medicare and Medicaid Services (CMS) has approved the nation's first Medicaid pooling program.
First Health Services' national Medicaid pooling initiative is an innovative program that combines the purchasing power of participating State Medicaid pharmacy programs for better drug prices from pharmaceutical manufacturers. With the pool, states are expected to save an additional 12 - 18 percent on their prescription drug spend. The program was first announced in February 2003 by the states of Michigan and Vermont, the two original participating members.
"This is a great day for the states. CMS' approval of the national Medicaid pooling initiative is a major step forward, enabling states to regain control over pharmaceutical spending while preserving clinical outcomes. We applaud their teamwork and the collaboration that created this success," said Teresa DiMarco, President of First Health Services. Through competitive pharmaceutical purchasing, state Medicaid drug programs will save money and help ensure access to this important drug benefit for as many Medicaid recipients as possible.
In its action today, CMS approved the Medicaid State Plan Amendments (SPAs) of the five states that had been formally submitted to CMS, including those from Michigan, Vermont, New Hampshire, Nevada and Alaska, with a combined Medicaid drug spend of over $1 billion. The State of Hawaii has also announced its intent to participate. As additional states join the pool and volume in the pool grows, savings for all states are expected to increase.
First Health Services provides pharmacy benefits administration services to 16 states and the District of Columbia and has received Intent to Award notices from three additional states. The company currently has preferred drug list (PDL) and supplemental rebate negotiation contracts with Medicaid programs in 11 states, which represents a combined annual Medicaid drug spend of more than $7 billion.
First Health Services is one of the nation's leading providers of integrated clinical management services for public sector health care clients. As a pioneer in the Medicaid management field, First Health Services offers a full range of Medicaid fiscal agent, pharmacy benefit administration, health care management and quality assurance services. First Health Services is also a CMS-approved Medicare Discount Card Sponsor. The company is a wholly owned subsidiary of First Health Group Corp. (NASDAQ:FHCC), based in Downers Grove, Illinois.
Contacts
First Health Services Scott Allocco, 804-965-7472 SJAllocco@fhsc.com www.fhsc.com