How does the government regulate the pricing of pharmaceuticals?

The government regulates the pricing of pharmaceuticals in North Carolina in order to ensure that the cost of medications are affordable to patients. The primary regulation is done by the North Carolina Department of Health and Human Services, which sets maximum allowable costs (MACs) for drugs and other medical supplies. This is done by setting a maximum amount that pharmacies can charge for a particular medication, and if the pharmacy does not have the medication in stock, the MAC limit will be used to compare the retail price of other pharmacies. Additionally, the North Carolina Medicaid and Health Choice programs cover the cost of certain medications, so the state will also negotiate the prices with drug companies on behalf of the recipients of these programs. Lastly, private insurance companies have the ability to negotiate drug prices with drug companies, so the cost of medications in North Carolina may be lower than in other areas if your insurance company has favorable rates. Ultimately, these measures are used to keep the cost of pharmaceuticals in North Carolina affordable for the citizens of the state.

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How does the government regulate the pricing of pharmaceuticals?

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