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Medicaid Block Grants: Allowing More State Flexibility To Limit Rx Coverage?

 
• By Cathy Kelly

Medicaid block grant funding mechanism, which could allow states to bypass coverage requirements in the Medicaid drug rebate program, surfaces in House American Health Care Act.

The latest version of the American Health Care Act would allow states the option of choosing to get their federal Medicaid contribution in the form of a block grant and might also permit them to reduce the number of prescription drugs their Medicaid programs cover.

The coverage flexibility could allow for an exemption from the Medicaid drug rebate program, which requires Medicaid to cover drugs that are subject to statutory rebates (see box).

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