CBO: E&C’s Medicaid Rebate Measure Would Save $15.9 Billion

By John Wilkerson / February 16, 2021 at 5:28 PM
House Energy & Commerce legislation to remove the cap on inflationary drug rebates in Medicaid would save taxpayers $15.9 billion over a decade, according to the Congressional Budget Office. Medicaid requires a minimum 23% rebate on brand drugs, and companies pay an additional inflation rebate when they raise prices faster than inflation. That inflationary rebate is currently capped at 100% of the Average Manufacturer Price to avoid making drug companies pay rebates greater than the price of drugs. The Energy...

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