Medicaid Diabetic Supply 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 diabetic supply 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 diabetic supply Special 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 diabetic supply 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 may:

  • Promote the most cost-effective, clinically appropriate alternative diabetic supplies;
  • Leverage their collective covered lives to negotiate for discounts on diabetic supplies;
  • Collect incentives from diabetic supply manufacturers in the form of rebates negotiated based on actual utilization.