R.I. Gen. Laws § 40-21-2

The Department of Human Services is hereby authorized and directed to amend its regulations and the Rhode Island State Plan for Medical Assistance (Medicaid) pursuant to Title XIX of the federal Social Security Act, 42 U.S.C. § 1396 et seq., to modify the fee-for-service program prescription drug reimbursement formula to establish a ceiling equivalent to the combination of the manufacturer’s wholesale acquisition cost and a dispensing fee of three dollars and forty cents ($3.40) for outpatient prescriptions and two dollars and eighty-five cents ($2.85) for long-term-care prescriptions.