Question

The prices paid by the Medicaid program for covered outpatient drugs are limited by:

A) Market demand and supply.

B) Pharmaceutical company negotiations.

C) Federal regulations and guidelines.

D) State-specific pricing policies.

Answer 1

The prices paid by the Medicaid program for covered outpatient drugs are limited by federal regulations and guidelines. This includes negotiating discounted prices with pharmaceutical companies and setting price limits based on market prices.

Step-by-step explanation:

The prices paid by the Medicaid program for covered outpatient drugs are limited by federal regulations and guidelines.

This means that the federal government sets rules and guidelines for the prices that Medicaid can pay for drugs. These regulations help to control the costs and ensure that the program is able to provide affordable medication to its beneficiaries.

For example, the federal government may negotiate discounted prices with pharmaceutical companies or set price limits based on the average prices in the market.