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Rider 24 Report details drug rebate program


The Texas Health and Human Services Commission (HHSC) collected more than $5.3 billion dollars in prescription drug rebates for the last five calendar years, according to the Rider 24 Re- port, the annual performance report for the Prescription Drug Rebate Program, which was released to the Texas Legisla- ture in February.


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The federal Omnibus Budget Recon- ciliation Act of 1990 requires that for a prescription drug to be included on a state’s Medicaid formulary, drug manu- facturers must enter into a national re- bate agreement with the federal Centers for Medicare & Medicaid Services (CMS). The drug manufacturer’s current product and pricing information is the basis for the rebate amounts. In Texas, drug rebate programs exist for Medicaid, the Children’s Health In- surance Program (CHIP), and the Texas Department of State Health Services (DSHS) Kidney Health Care Program and Children with Special Health Care Needs Services Program. Drug manufacturers pay rebates to HHSC, which shares the Medicaid and CHIP rebates with CMS. HHSC and DSHS add the state’s portion of the rebates to the respective program budget. HHSC’s Vendor Drug Program manages the Texas Medicaid, CHIP, and DSHS program formularies and oversees the contractor responsible for adminis- tration of the rebate programs. In addition to the federally mandated


drug rebates, Texas has a supplemental Medicaid rebate program for preferred drugs. Access the full Rider 24 Report on the HHSC website, www.hhsc.state .tx.us/reports/2013/Rider-24-Annual- Report-0213.pdf. n


Crystal Zuzek is an associate editor of Texas Medicine. You can reach her by telephone at (800) 880-1300, ext. 1385, or (512) 370-1385; by fax at (512) 370-1629; or by email at crystal.zuzek@texmed.org.


46 TEXAS MEDICINE July 2013


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