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Projected Impacts of Adopting a Pharmacy Carve-In Approach Within Medicaid Capitation Programs

February 2011

Sponsored by: Medicaid Health Plans of America

Thirteen states use a pharmacy carve-out model in their Medicaid managed care programs. This report assesses the policy option of these states moving to a pharmacy carve-in approach, quantifying the expected savings in each state and exploring the programmatic dynamics of the two alternatives. The report finds that large-scale savings are likely to occur in most of these 13 states by switching to the carve-in approach.
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