Sovereign States Drug Consortium Medicaid Supplemental Drug Rebate Program
Sovereign States Drug Consortium Medicaid Supplemental Drug Rebate Program
The Sovereign States Drug Consortium (SSDC) includes a Medicaid supplemental drug rebate program that allows participating states to pool their prescription utilization numbers to obtain supplemental rebates from pharmaceutical manufacturers.
The SSDC was first authorized by the Centers for Medicare and Medicaid Services (CMS) on July 20, 2006, in the approvals of the supplemental rebate State Medicaid Plan amendments of the first member states, Iowa, Maine, and Vermont. Since then the states of Utah, Wyoming, West Virginia, and Oregon have joined the SSDC and received CMS approval of their plans. The SSDC is the only authorized state-administered Medicaid supplemental drug rebate pool.
States belonging to the SSDC:
- Use Preferred Drug Lists (PDLs) for selected high use, high cost drug classes;
- Promote clinically appropriate alternatives that are the most cost-effective in the individual classes;
- Prefer products that are generics and low cost brands;
- Prefer higher cost brands with high mandatory federal rebates and/or where the drug manufacturers provide financial incentives to have their products preferred;
- Leverage their collective covered lives to negotiate for discounts in drug costs; and
- Collect any incentives from drug manufacturers that are the rebates negotiated based on actual utilization.
For more information about the SSDC's Medicaid supplemental drug rebate program and its activities see the following links: