Drug Pricing Reform In Medicaid: Watch This Space

Some manufacturers may have to start essentially paying Medicaid programs to cover their drugs beginning in 2024 under a provision in the US economic relief bill headed to President Biden. 

More Pressure On Price Increases Coming In Medicaid

The provision in the economic stimulus bill lifting the cap on drug rebates in Medicaid is on track for implementation in 2024 following final approval of the $1.9tn legislation by the US House of Representatives 10 March. Rebates are currently limited to 100% of a drug’s price, thus the provision means that manufacturers might have to pay rebates exceeding a drug's price.

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