In an effort to provide low-cost prescription drugs to the state’s uninsured, Maryland proposed to offer them prescription drugs at Medicaid prices, but the Centers for Medicare and Medicaid Services (CMS) rejected the plan. (Kaiser Network)
The state sought to finance the plan through various sources, including through pharmaceutical company rebates. This is not a legitimate source for matching funds, says CMS spokesperson Mary Kahn.
The federal government matches state Medicaid spending by 50 percent and sometimes as high as 76 percent.