Inside Drug Pricing - 07/22/2019

Senate Finance Plans To Hike Medicaid Rebate Cap To 125% Of AMP

By John Wilkerson / July 19, 2019 at 11:18 AM
Updated Story The Senate Finance Committee plans to increase the Medicaid drug rebate cap from 100% of a drug’s average manufacturer price to 125% and remove the cap entirely for new drugs, according to sources following the negotiations. The rebate measure is part of drug-pricing legislation that committee members are negotiating. Brand-drug makers currently pay a base 23.1% rebate to Medicaid, plus inflationary rebates when prices rise faster than the Consumer Price Index-Urban. Medicaid rebates are capped...


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