The National Association of Chain Drug Stores has endorsed legislation that would give states incentive to use generic drugs through their Medicaid programs.


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NACDS backs bill to hike Medicaid generics use

November 4th, 2011

ALEXANDRIA, Va. – The National Association of Chain Drug Stores has endorsed legislation that would give states incentive to use generic drugs through their Medicaid programs.

NACDS said Thursday that it has sent a letter to Rep. Charles Bass (R., N.H.) to express its support for the Affordable Medicines Utilization Act, which he introduced in the House of Representatives. His bill is the companion to S. 1356 legislation in the Senate.

"The majority of Medicaid prescriptions — 70% — are filled by chain pharmacies. Local pharmacies across the country work with state Medicaid programs to promote best practices and help to implement policies that promote the use of generic medications. Increasing generic utilization is the most effective way to control prescription drug costs," NACDS stated in the letter.

"Community pharmacies are leading the way to maximize the use of generic drugs, with a higher generic dispensing rate — 71% — than any other practice setting. For every 1% increase in generic utilization, the Medicaid program could save approximately $809 million," the association explained. "For example, in calendar year 2010, the Hawaii fee for service Medicaid program had the highest generic dispensing rate in the nation, at 82.7%. If all other states could match the Hawaii rate, the Medicaid program could save $9.49 billion."

According to NACDS, the bill would provide states 50% of the share of generated savings in cases in which a state has an increase in the generic drug utilization rate for fiscal years 2012, 2013 and 2014. 

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