The KHC Program is mandated by the Legislature to have a rebate agreement with the manufacturer before a drug is added to the formulary

Manufacturers participating in the MDRP as an approved SPAP can exclude prices to SPAPs from their Medicaid Best Price calculations. This allows the State to use the full CMS rebate rate to simplify the paperwork for both the State and the manufacturer. All rebate money collected for KHC drug claims is returned to the program for client services.

Complete the KHC Program Drug Rebate Agreement (HHS Form 1329) and return two originals to the KHC program to participate in the rebate program.