Medicaid Reform: Trump Administration Pursuing Rebates Over 100%
States might also be able to test closed formularies in Medicaid as Trump Administration seeks stronger disincentives for price increases.
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A $16bn provision to increase rebates in the US Medicaid program is a surprise inclusion in the COVID relief package moving through Congress. It looks like an uphill fight for industry to stop it from happening.
House Democrats push to remove the current limit on Medicaid rebates in upcoming COVID-19 relief package would likely leave many drug companies unscathed, but some expect bigger ticket drug pricing items will soon be on the agenda.
Senate Finance Committee's drug pricing bill would also exclude authorized generics from calculation of average manufacturer prices and rebates and authorize installment-type payments for curative gene therapies.