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Price Inflation Rebates And The Spectre Of 100% Discounts In Medicare Part D

 
• By Cathy Kelly

Medicaid programs are essentially getting Humira for free, in large part because of price inflation rebates, according to estimates by Bernstein analysts. Legislation pending in the US Senate wants to bring that dynamic to Medicare.

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A Frightening Prospect?

Prescription drug pricing legislation pending in the US Senate seeks to adapt a nearly 30 year-old Medicaid cost containment policy to Medicare. Biopharma’s objection to the legislation can be explained by looking at how price inflation rebates have played out in the states.

Established in 1990 as part of the Medicaid Drug Rebate Program, the inflation rebate requires manufacturers to provide additional rebates to Medicaid programs when

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