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The Vitals

HHS Inspector General Studies Whether Authorized Generics Lower Medicaid Rebates

June 01, 2018
The HHS Inspector General is studying whether including sales of authorized generics in the average manufacturer price lowers Medicaid rebates that drug companies provide, according to the Inspector General’s most recent work plan, and prior OIG work already showed that it does. Brand drug companies make authorized generics of their own drugs when they are about to face true generic competition. The practice discourages generic competition by undermining the benefits of being the first generic to market. It also lowers...


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