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PBM Regulatory Roundup (Fall 2022): State Medicaid Enforcement Efforts Continue As Legislative Activity Slows Down | Mintz - Health Care Viewpoints

PBM Regulatory Roundup (Fall 2022): State Medicaid Enforcement Efforts Continue As Legislative Activity Slows Down - Healthcare

Though the flurry of state PBM-focused legislation slowed down with the summer recess, there has still been plenty of noteworthy PBM news. This roundup focuses on state Medicaid enforcement.

Fall 2022 Pharmacy Benefit Management Regulations

Centene is subject to several state investigations alleging Centene’s managed care organizations and Centene’s PBM participated in state specific schemes to misrepresent pharmacy costs. There are state and federal PBM legislative changes in Delaware, New Jersey and Pennsylvania.

Capping Hospital Prices

High hospital prices are a leading driver of high and rising costs in the U.S. health care system, resulting in insurance premium growth that outpaces the growth in wages and inflation. In particular, the cost of hospital care accounts for one-third of all U.S. health care expenditures. On average, hospitals command prices in the commercial market that are more than twice as high as Medicare, with some hospitals charging three or four times as much. High hospital prices have been fueled by a number of factors, including increasing market consolidation and “must-have” hospitals flexing their market power to negotiate significantly higher prices from commercial insurers.

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