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Ch 6
What does OBRA stand for?
Omnibus Budget Reconciliation Act.
Why is OBRA ’90 important to pharmacy?
It was the first federal law to directly regulate pharmacy practice standards.
What was the primary goal of OBRA ’90?
To save money and reduce healthcare costs.
What model of pharmacy care did OBRA ’90 adopt?
The pharmaceutical care (pharmacist care) model.
What does pharmaceutical care focus on?
Pharmacists taking responsibility for patient care and medication-related needs.
What did OBRA ’90 require states to establish?
minimum standards for pharmacy practice.
Who must adopt the minimum pharmacy practice requirements?
Individual states must adopt them.
What happens if states do not establish the required standards?
they risk losing federal Medicaid funding.
Why did OBRA ’90 connect pharmacy standards to Medicaid funding?
To encourage states to establish and enforce minimum pharmacy practice standards.
What is one major part of OBRA ’90's basic framework?
Drug manufacturer rebates to the Medicaid program.
What does OBRA ’90 require drug manufacturers to provide to Medicaid?
Their drugs at their “best price.”
What does “best price” mean?
The lowest price at which a manufacturer sells a drug to any customer.
How does Medicaid receive the manufacturer rebate?
The manufacturer pays the state the difference between the Average Manufacturer Price (AMP) and the best price.
What is the purpose of manufacturer rebates under OBRA ’90?
to help Medicaid save money on prescription drugs.
Who receives the manufacturer rebate?
The state Medicaid program.
What did OBRA ’90 fund?
Demonstration projects.
What was the purpose of the demonstration projects funded by OBRA ’90?
To evaluate whether Drug Utilization Review (DUR) requirements improved patient care and decreased healthcare costs.
What does DUR stand for?
Drug Utilization Review.
What were the two main goals evaluated in the demonstration projects?
Improved patient care.
Decreased healthcare costs.