There are numerous drug pricing benchmarks which can be used to price prescription drugs. Recent legislative proposals aim to change the way the most widely used drug pricing benchmark in Medicaid is determined by enhancing pharmacy requirements to report prescription drug prices. The purpose of this issue brief is to determine to what extent changes in CMS’ National Average Drug Acquisition Cost (NADAC) methodology would result in savings to Medicaid, and other programs who rely upon NADAC as a mechanism to approximate drug ingredient costs.
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