The Arkansas Medicaid program is the biggest purchaser of prescription drugs in the state. That is four times the amount any private insurance company pays. Private insurance companies get a discount for volume, even though they spend less than the state does. To take advantage of the State's huge volume, Medicaid is proposing to get a price break from large corporations those that own 11 or more pharmacies. Medicaid believes big corporations buy their drugs in volume, at cheaper prices than small independent drug stores.
Large corporations give discounts to private insurance companies.
Therefore, the State should get a discount too. Under the proposed plan, small pharmacies would be reimbursed as they are now. And since Medicaid spends four times what the largest private insurance company does, its proposal makes good business sense for the Arkansas taxpayer. The large corporations do not agree and are loudly protesting. They state the plan is not realistic and is unfair.