As state legislatures grappling with budget shortfalls search high and low for every possible angle to cut costs, big insurance companies and pharmacy benefit managers have managed to convince a handful of states to transition their Medicaid programs into a “Managed Care” model. 

The insurers and PBMs promise the legislatures big savings – though it’s not clear they will deliver – and encourage the states to hand over taxpayer dollars for Medicaid to Fortune 500 companies and cut independent pharmacists and their customers out of the loop. 

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