Louisiana Seeks to Cut Medicaid Spending with Buying Pool

State health officials in Louisianahave announced plans to join withtheir counterparts in Maryland andWest Virginia to form a multistatedrug-buying consortium to reduce thecost of their Medicaid prescriptiondrug programs.

Louisiana's Department of Healthand Hospitals has petitioned the federalCenters for Medicare and MedicaidServices (CMS) for authorization toparticipate in the buying pool, whichofficials say could result in programsavings of $8 million to $10 millionannually in their state alone.

A similar plan for a 7-state purchasingpool, which includes Michigan,Vermont, New Hampshire, Alaska,Nevada, Minnesota, and Hawaii, wasapproved by CMS during 2004.

Mr. Rankin is a freelance medical writer.