06/05/2024
Thank you Joe Biden:
NADAC Changes and Reimbursement Impacts
The Centers for Medicare and Medicaid Services (CMS) recently made changes to the National Average Drug Acquisition Cost (NADAC), which is used in drug reimbursement, primarily in Medicaid. This change has raised concerns regarding the negative effect on reimbursements for a wide selection of generic drugs.
For context, NADAC is designed to create a national benchmark that is reflective of the prices paid by retail community pharmacies to acquire prescription and over-the-counter covered outpatient drugs. NADAC is a reimbursement benchmark in some Medicaid and Commercial agreements with PBMs, a decline in NADAC may result in lower reimbursement to pharmacies.
McKesson is acutely aware of the impact that this could have on MID pharmacies, and we are actively monitoring the situation. In addition, we are engaging with industry partners, such as the National Association of Chain Drug Stores (NACDS) and National Community Pharmacists Association (NCPA), on how best to support you due to these changes. We are also working to understand the long-term implications of NADAC changes since the number of pharmacy reimbursement contracts that rely on NADAC continues to grow.
We will continue to advocate on your behalf and as the situation unfolds, and we will share what we know to help cut through the complexity of this issue. Should you have any questions or require further information, please do not hesitate to contact us.
Sincerely,
Heather Morel, PhD
President, Provider Solutions
McKesson