Testimony Opposing HB 1293: National Average Drug Acquisition Cost
We are writing to express our strong opposition to HB 1293, which mandates the use of the National Average Drug Acquisition Cost (NADAC) and the state’s dispensing fee for prescription drugs in the Medicaid managed care system. We believe this legislation is not only misguided but also counterproductive, as it would undermine the fundamental principles of the Medicaid managed care system and ultimately lead to increased costs for taxpayers.
Texas partners with private health insurance providers, known as Medicaid managed care organizations (MCOs), to administer the Texas Medicaid program. MCOs assume all financial risk for providing needed services to their members, and in return, they have the flexibility to negotiate provider rates and establish a provider network that is more innovative and efficient than the fee-for-service (FFS) model. This partnership has been instrumental in containing costs and ensuring beneficiaries receive high-quality, accessible healthcare services.
Read TAHP’s full written testimony.
