A comparative study of current Medicaid prescription reimbursement (MAC/EAC) (maximum allowable cost/estimated acquisition cost) with prescription reimbursement based on a competitive market.

Many pharmacists have suggested that the current Maximum Allowable Cost/Estimated Acquisition Cost (MAC/EAC) program has departed from its intended purpose of generating savings by taking full but fair advantage of the competitive marketplace. The objective of this study was to compare Medicaid prescription reimbursement under current MAC/EAC regulations with prescription reimbursement based on a competitive market. Data representing the top selling single source and multiple source drug products for nine states were analyzed. Results indicated that the current MAC/EAC system of Medicaid reimbursement produced a small savings when compared to reimbursement based on a competitive market.