In Michigan, Medicaid can now pay for drugs based on how well they work

WASHINGTON — The Trump administration gave Michigan’s Medicaid program permission to pay for drugs based in part on how well the drugs work, Centers for Medicare and Medicaid Services Administrator Seema Verma announced Wednesday.

“Michigan’s waiver will empower it to demand results from drug manufacturers in exchange for paying for medicines,” Verma said in a speech at an industry conference.

Paying for drugs based on their effectiveness is one of the Trump administration’s main strategies for lowering the cost of prescription drugs, and Wednesday’s approval is the second granted to a state Medicaid program. The first went to Oklahoma in June.

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