Michigan seeking bids for pharmacy benefits administration

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The Michigan Department of Health and Human Services is seeking bids from organizations interested in serving as the state’s pharmacy benefit administrator. 

The state’s pharmacy programs provide prescription drug coverage for Medicaid beneficiaries and related health programs, along with pharmacy point-of-sale claims processing, prior authorization, clinical advisory support and Medicaid drug rebate administration services, according to a Dec. 15 news release.

In 2024, the state needed more than 24.5 million claims processed and saw more than $2 billion in rebates invoiced.

Interested parties can bid on either the claims processing component or drug rebate administration component separately, or as a combined proposal. The initial contract will be for three years through 2029, with the potential for four additional years. 

Awards for new contracts are anticipated by July 3, for implementation on Oct. 1, 2026.

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