Did MSAs mandatory generic drug substitution requirement ensure that generic drugs were used whenever possible?
Conclusion: We concluded that MSA’s mandatory generic drug substitution requirement did ensure that generic drugs were used whenever possible. Noteworthy Accomplishments: Our analysis of MSA’s data disclosed that MSA’s generic drug dollar substitution rate averaged 98.7% (the generic drug paid claims amount divided by the total generic and multiple-source drug paid claims amount) and its generic drug claims substitution rate averaged 99.7% (the number of generic drug paid claims divided by the total generic and multiple-source drug paid claims) for calendar year 1993. The Office of Inspector General for the federal Department of Health and Human Services cited that nationwide states’ generic drug claim substitution rates ranged from 37% to 99%. Audit Objective: To answer the question: What were the cost savings to Michigan’s Medicaid program from MSA’s generic drug substitution requirement? Conclusion: Based on an analysis of MSA data, we estimated that, during calendar year 1993, MSA
