Medicaid Rebates For Brands Could Rise $3.2Bn Over Next Decade Under New Law
Provision included in appropriations legislation directs manufacturers to calculate average prices for brands without including the cost of authorized generics, which will lead to higher rebates.
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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.
The bigger 'Donut Hole' discount is a rare loss for pharma on Capitol Hill – one that may in part be because industry did too good a job fighting off a different drug pricing measure.
Current drug classification standard was originally designed for the Medicare Part D program, which does not cover obesity drugs.