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The biggest opportunity for competitive pricing is where there are multiple expensive drugs with similar properties for a particular condition. Whichever comes in at the lowest price wins and goes into the formulary, making it easy for doctors to prescribe and inexpensive for patients. The others are left out; they can still be prescribed but won’t be paid for by insurance unless the doctor can justify that choice to a reviewer. If the other competitors match the low bidder, they may be included on the formulary also. The VA health system has done this for decades and saves billions in the process. It improves quality of care, patient satisfaction, and outcomes.

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