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SSDCElectronic Rebate Offer Management System

Sovereign States Drug Consortium

The Sovereign States Drug Consortium (SSDC) is a collaborative group of Medicaid states. Collectively members are focused on containing pharmacy costs. Individually each state retains the ability to manage its pharmacy benefit, customizing its own Preferred Drug List and Prior Approval program.

The primary activity of the SSDC is the operation of a Medicaid supplemental drug rebate program. In this, the SSDC negotiates for and acquires rebates from drug manufacturers, supplemental to federal Medicaid rebates, for drugs utilized in the states' Medicaid programs.

The SSDC also provides a forum for Member States to cooperate in other areas of pharmacy benefit administration and management in Medicaid and other publicly funded pharmacy benefit programs. One such project is a diabetic supply rebate program.

Change Healthcare, of Augusta, Maine, is the SSDC’s current supplemental rebate negotiator and has managed the SSDC negotiation process since contract year 2006.

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Important News and Deadlines

The Sovereign States Drug Consortium (SSDC) includes a Medicaid supplemental drug rebate program that allows participating states to pool their prescription utilization numbers to obtain supplemental rebates from pharmaceutical manufacturers.

The SSDC’s program was first authorized by the Centers for Medicare and Medicaid Services (CMS) on July 20, 2006, in the approvals of the supplemental rebate State Medicaid Plan amendments of the first member states, Iowa, Maine, and Vermont. Since then the states of Utah, Wyoming, West Virginia, Oregon, Mississippi , Ohio, Pennsylvania, Delaware, North Dakota, South Dakota, Oklahoma, and Kentucky have joined the SSDC and received CMS approval of their plans. The SSDC is the only authorized state-administered Medicaid supplemental drug rebate pool.

States belonging to the SSDC:
Use Preferred Drug Lists (PDLs) for selected high use, high cost drug classes;
Promote clinically appropriate alternatives that are the most cost-effective in the individual classes;
Prefer products that are generics and low cost brands;
Prefer higher cost brands with high mandatory federal rebates and/or where the drug manufacturers provide financial incentives to have their products preferred;
Leverage their collective covered lives to negotiate for discounts in drug costs;
Collect incentives from drug manufacturers in the form of rebates negotiated based on actual utilization.


Diabetic Supply Rebate Program:
The Sovereign States Drug Consortium (SSDC) includes a Medicaid diabetic supply rebate program that allows participating states to pool their utilization numbers to obtain rebates from diabetic supply manufacturers.

States belonging to the SSDC may:
• Promote the most cost-effective, clinically appropriate alternative diabetic supplies;
• Leverage their collective covered lives to negotiate for discounts on diabetic supplies;
• Collect incentives from diabetic supply manufacturers in the form of rebates negotiated based on actual utilization.
For more information about the SSDC’s Medicaid diabetic supply rebate program and its activities see the following links:
• SSDC CY2025 Diabetic Supply Rebate Solicitation Letter
• Diabetic Supply Offer Submission FAQ

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