Shane Abbott seeks lower drug costs for Medicaid program, hopes to save the state millions

Shopping basket full of medicines, pills, blisters and vaccine on a receipt. Expensive medicine and healthcare concept. 3d illustration

Republican Rep. Shane Abbott wants the state to pay less for prescription medications to serve Medicaid patients.

Abbott has filed a bill (HB 657) that would require drug manufacturers to sell certain medications to Medicaid pharmacies at discounts available under the federal 340B Drug Pricing Program.

His bill would apply to medications on the Medicaid preferred drug list that are covered under 340B, which includes most commonly prescribed medicines as well as those for chronic illnesses and diseases, such as HIV/AIDS, cancer and diabetes.

If passed, the measure would reduce costs for the state by lowering the cost of drugs purchased for Medicaid patients.

Under the bill, the state would essentially be guaranteed to pay lower prices. It includes language that would require drug manufacturers, if they sell a medication to a Medicaid pharmacy at a price higher than the 340B Drug Pricing Program discount, to pay a rebate to the state to comply with the negotiated price.

The 340B program is part of federal legislation requiring manufacturers to sell discounted prescription drugs to certain health care organizations. Passed in 1992 as part of the Public Health Service Act, it does not directly require the reduced costs for Medicaid.

Abbott’s legislation would ensure that drugs purchased for use among Medicaid recipients would receive the same discounts under the federal pricing program.

If passed, the bill would take effect Jan. 1, 2026. Abbott expects companion legislation in the Senate soon. He doesn’t anticipate any partisan squabbles, either.

“This is a nonpartisan issue where everyone looks at it and goes, ‘if we’re saving money we’re saving money,” said Abbott, himself a pharmacist.

He described 340B prices as “bottom of the barrel,” and said his bill would extend those lower prices to the state as it facilitates Medicaid, rather than only applying to drug prices for those without insurance.

While he acknowledged the prescription drug industry will no doubt push back against his bill, Abbott said it is a potential huge cost savings to taxpayers, though he also noted it would be up to state health officials to determine exactly how much the legislation would save.

“340B pricing is typically always going to be the cheapest price,” Abbott said. “So I’m going to hold drug manufacturers accountable to the Florida taxpayers to make sure we’re getting the cheapest prices out there.”

He said the “long-term goal is to put several millions of taxpayer dollars back into” the state’s general revenue fund.

While the measure is expected, if passed, to save the state — and by proxy, taxpayers — money, Medicaid recipients would not notice a difference. Medicaid patients already pay reduced or no-cost fees for prescription medications.