House Bill Removes Authorized Generics From Medicaid Rebate Formula

The House passed legislation Tuesday (June 18) to stop authorized generics from lowering the rebates that drug companies must pay in Medicaid. The rebate measure was also included in the president’s budget request. Authorized generics are branded drugs that are marked as generics and sold by subsidiaries of brand drug makers or third parties. Authorized generics are still approved as a New Drug Application, which is why they are included in Medicaid rebate calculations along with the branded drug, but...