Limiting State Flexibility in Drug Pricing

Authors

Nicholas Bagley, University of Michigan Law SchoolFollow
Rachel E. Sachs, Washington University Law School, St. LouisFollow

Document Type

Article

Publication Date

9-2018

Abstract

Throughout the United States, escalating drug prices are putting immense pressure on state budgets. Several states are looking for ways to push back. Last year, Massachusetts asked the Trump administration for a waiver that would, among other things, allow its Medicaid program to decline to cover costly drugs for which there is limited or inadequate evidence of clinical efficacy. By credibly threatening to exclude such drugs from coverage, Massachusetts hoped to extract price concessions and constrain the fastest-growing part of its Medicaid budget.

Recommended Citation

Bagley, Nicholas. "Limiting State Flexibility in Drug Pricing." N. Engl. J. Med. 379, no. 11 (2018): 1002-1004.