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Medicaid Rebate Reform: A Sign Of Minimal Drug Pricing Threats Or A Warning Of More To Come?

 
• By Sarah Karlin-Smith

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.

Inflation warning "traffic" sign
Energy and Commerce Democrats want to remove a limit on Medicaid inflation-based rebates. • Source: Shutterstock

Democrats look likely to take a first, but relatively limited, action on drug pricing in the upcoming budget reconciliation bill that the Biden White House aims to use to get its $1.9 trillion coronavirus relief package through the US Congress.

The important question for pharmaceutical companies may be whether this action is a sign Democrats will only take small steps on drug pricing or an indication that they are just...

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