Medicaid Drug Prices

Global Pricing Impact

April 8, 2026

Medicaid Savings Without Borders

The State of Michigan spent $4.1 billion in fiscal year 2024 on medications for Medicaid enrollees. After rebates, the state’s total FY 2024 spend on medications for Medicaid enrollees was $1.5 billion. As healthcare stakeholders look for savings, the organization PharmaFairness wanted to understand the total fiscal impact if Michigan Medicaid secured medication prices that mirror international prices similar to those in other countries such as the United Kingdom (U.K.) and Canada. To better diagnose cost disparities, Public Sector Consultants researched and compared Michigan Medicaid drug prices with those of the same 50 drugs, doses, and quantities in the U.K. and the Canadian Province of Ontario.

Download Full Analysis

This content is made possible by in-depth research and analysis conducted by PSC. Please consider providing some additional information to download this content so we can let you know about other relevant research we’re conducting. We will never share your information with other organizations.

This field is for validation purposes and should be left unchanged.

Name

First Last

Organization/Affiliation

This field is hidden when viewing the form

Report Name

CAPTCHA

Key Findings

Along with comparing the same 50 drugs, doses, and quantities in the U.K. and the Canadian Province of Canada, PSC also researched a small set of individual drug price differentials for other European nations. After reviewing the data, PSC determined the following:

Michigan could conservatively save more than $800 million on top of existing rebates if drugs for Medicaid could be purchased at the prices available to the U.K.’s National Health Service or to Ontario residents
If Michigan Medicaid could access prices comparable to prices in the U.K. or Ontario, the discount received through and existing drug rebate program could increase by 20%
Michigan Medicaid could save tens of millions of dollars on popular drugs used to treat Type 2 diabetes, chronic kidney disease, and blood thinners that reduce blood clotting if it paid European nations and Canadian prices.

The findings above represent an overview of our research. For the complete data set and specific international price comparisons, please download the full report.