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In a first-of-its-kind move, the Trump administration will allow Tennessee officials to restrict medicines covered by the state Medicaid program, which is currently required to provide coverage for all treatments.

As part of an effort to overhaul spending by the state program, Tennessee will be permitted to maintain a so-called closed formulary, which is the same approach to coverage taken by private health plans. At the same time, the state program will be able to retain Medicaid drug rebates even as state officials negotiate with drug companies for other supplemental rebates.

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