Lansing – Michigan is the second state to receive federal approval for a drug-pricing experiment that supporters say may enable the state to save money and ensure medicines are working as advertised.

The Centers for Medicare and Medicaid Services announced the waiver approval Wednesday, months after OK’ing a similar proposal from Oklahoma. Administrator Seema Verna says Michigan will be empowered to “demand results from drug manufacturers in exchange for paying for medicines” for Medicaid recipients.

Under the value-based purchasing program, the state and a pharmaceutical company would agree to a set payment if its medication works as advertised, but only a fraction of that if the drug is not as effective as promised.

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