The N.C. Medicaid Program has announced plans to implement a Preferred Drug List (PDL) beginning March 15. During the last legislative session, the N.C. General Assembly authorized the establishment of the PDL as a potential cost savings tool. The list will allow the program to obtain better prices for covered outpatient drugs through supplemental rebates. All therapeutic drug classes where the manufacturer provides a supplemental rebate are considered for inclusion on the list with the exception of HIV/AIDS drugs. NCAFP representatives have expressed our concern, and will continue to do so, about implementation of the PDL. The initial list mimics current Medicaid policy. Drugs or classes of drugs that have required prior authorization previously will continue to do so. Initially no new prior authorizations will be required. However, additional edits and prior authorizations are likely prior to the end of this fiscal year (June 30) for implementation during the next fiscal year. These changes will go through a comment period as past prior authorization requirements have.

To see complete information about the proposal or to provide comments (prior to March 13), please go to http://www.ncdhhs.gov/dma/mpproposed/index.htm. The Academy's staff and government affairs team continues to work to minimize the impact on our members and on your relationship with your patients. However, the Division of Medical Assistance is constantly seeking new cost savings ideas due to the state's ongoing fiscal crisis.

Look for additional updates as this process moves forward.