CMS rejected a Maryland law that would have allowed low- to moderate-income uninsured state residents to purchase prescription drugs at prices available through Medicaid, agency officials said Wednesday, the Baltimore Sun reports. The law, which was approved unanimously by the state Legislature last year, would have provided discounts to about 37,000 state residents with annual incomes of less than $20,000, according to Susan Steinberg, chief operating officer for Maryland Medicaid. CMS rejected the law because the state planned to finance the program in part through rebates from pharmaceutical companies. According to the fiscal note for the 2005 legislation, the program would be financed over four years with $1 million in state funds, $1.7 million from CareFirst BlueCross BlueShield and $2.7 million in federal matching funds. CMS spokesperson Mary Kahn said the rebates are not "a legitimate source of state matching funds." Steinberg said the state would determine whether other funds could be used for the program and whether the state can reapply for CMS approval. Vincent DeMarco -- president of Maryland Citizens' Health Initiative, which proposed the program -- said the state should have drafted an approvable application, adding, "The state dropped the ball and is denying 40,000 Marylanders substantial drug discounts." DeMarco said the program would have provided discounts of about 40% (Salganik, Baltimore Sun, 10/5).
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Publication Date: 2006-10-10 10:00
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