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WASHINGTON — The Trump administration on Thursday unveiled a powerful new tool for states to rein in prescription drug spending. But there’s a catch: States can only wield their newfound power if they accept a cap on the federal funding they get for their Medicaid program.

The new tool on offer would effectively help states negotiate lower prices directly with pharmaceutical companies by denying coverage for certain drugs. Right now, unlike private insurers and some other federal providers, Medicaid programs must cover every single drug — a fact that some states say hampers their ability to get the best deal on pricey medicines.

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