New drug/drug and drug/device combination products will not be subject to price inflation rebates in the Medicaid program under a final rule published by the Centers for Medicare and Medicaid Services on 31 December.
The rule seeks to establish clear specifications for what constitutes a line extension that would be subject to Medicaid rebate requirements, including price inflation rebates, on par with the original drug. Other provisions in the rule address Medicaid price reporting changes that could facilitate value-based payment arrangements