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5/21/2026
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Senate OKs Ujifusa bill to scrutinize Medicaid pharmacy benefits management
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Legislation is part of the Senate’s 2026 healthcare package
STATE HOUSE – The Senate today approved legislation sponsored by Sen. Linda L. Ujifusa for an independent study of the prescription drug management within the state’s Medicaid program. The bill is part of the Senate’s 17-bill package of healthcare legislation centered on supporting Rhode Islanders in crisis, protecting patients and providers and strengthening the state’s health workforce.
The Prescription Drug Savings and Transparency Act of 2026 (2026-S 2563), would direct the Auditor General to conduct a study of the performance and cost-effectiveness of the state’s current prescription drug management for the Medicaid program, including the use of pharmacy benefits managers (PBMs) by Medicaid managed care organizations, with a report of findings and recommendations issued to the General Assembly no later than March 31, 2027.
“Rhode Island administers Medicaid pharmacy benefits through multiple managed care organizations, each with its own pharmacy benefits manager and preferred drug list. This fragmented structure of middlemen makes it difficult to track where the dollars go, reduces our negotiating leverage and creates unnecessary complexity,” said Senator Ujifusa (D-Dist. 11, Portsmouth, Bristol). “Other states that have taken a closer look at their Medicaid prescription programs and simplified them have saved hundreds of millions of dollars. While we can’t predetermine what this study will find, it is worthwhile to shine a light on spending that accounts for such a huge portion of our state budget. This is a data-driven approach, and it’s good fiscal management.”
The legislation directs the auditor general to conduct the study of current practices in Rhode Island and compare them to practices in other states, such as Ohio, Connecticut and Kentucky, states that have reformed their Medicaid prescription benefits administration in recent years, each achieving substantial savings.
The legislation passed the Senate today, and will now head to the House of Representatives, where Rep. Teresa A. Tanzi (D-Dist. 34, South Kingstown, Narragansett) is sponsoring companion legislation (2026-H 8172).
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-1923
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