Medicaid Supplemental Drug Rebate Program

The Sovereign States Drug Consortium (SSDC) is an organization of 12 state Medicaid programs that have agreed to collectively solicit and evaluate offers from manufacturers for state supplemental rebates. The SSDC, which started in 2006 with three charter states – Iowa, Maine and Vermont – is the only Medicaid rebate pool organized and managed by the states. The SSDC is also unique in that it is the only Medicaid rebate pool in which member states contract individually with manufacturers using their own state-specific Supplemental Rebate Agreements (SRAs). The SSDC enables the states to leverage the purchasing power of their collective 5 million covered lives while providing each state with full ownership of its contracts.

The SSDC contracts with Change Healthcare to administer the rebate solicitation, negotiation and evaluation process. Each spring, Change Healthcare solicits offers for the pool from manufacturers for the following calendar year.

States belonging to the SSDC:

  • Use Preferred Drug Lists (PDLs) or Product Based Prior Authorization (PBPA) programs to direct utilization to drug and DME products that provide the greatest value.;
  • Leverage their collective covered lives to negotiate for drug and DME discounts from manufacturers.;
  • Collaborate and share best practices in other areas of Medicaid pharmacy administration and management;