Ohio ends pharmacy middlemen contracts over 'spread pricing'

The Ohio Department of Medicaid on Tuesday indicated it will end the state's contracts with PBMs that bill taxpayers more than they reimburse pharmacists for filling Medicaid patients' prescriptions. The state is moving to a more transparent pass-through pricing model January 1, under which PBMs would receive administrative fees and must bill the state the same amount they pay pharmacists. A state-commissioned report showed PBMs billed taxpayers $223.7 million more for prescription drugs in a year than they reimbursed pharmacies to fill those prescriptions. "It is refreshing to see some substantive movement toward a more transparent model," said Antonio Ciaccia, lobbyist for the Ohio Pharmacist Association.

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