Florida Officials Strike Deal to Exchange Disease Management Services for Placing Pfizer Drugs On State Medicaid Formulary

Florida and Pfizer Inc. have reached a "precedent-setting" deal that would place the pharmaceutical company's drugs on the state's Medicaid formulary without "price concessions" from the drug maker, the Wall Street Journal reports. For drugs to be placed on the formulary, which is designed to "push doctors" to prescribe drugs selected for price and medical reasons, companies are typically expected to offer the state price rebates. Pfizer, however, will be able to place its drugs on the list without cutting prices. Instead, the company will provide disease management services designed to control health care costs of the state's chronically ill Medicaid patients. Under the two-year deal, Pfizer will "guarantee" that its disease management program will save the state $15 million the first year and $18 million the second year. To reduce state Medicaid costs, the drug firm will work with 12,000 chronically ill patients to "reduce emergency-room and inpatient costs." Pfizer will also donate drugs to as many as 50,000 Medicaid beneficiaries at community health centers. In return, Pfizer can "avoid" paying a "supplemental rebate" to the state, which keeps the company from having to cut prices. Katie Baur, a spokesperson for Florida Gov. Jeb Bush (R), said, "[W]e know we got a good deal" (Gold/Hensley/James, Wall Street Journal, 6/22).