Drug Costs

New CMS Proposed Rule Could Help State Medicaid Programs Negotiate Greater Supplemental Rebates for Certain High-Cost Drugs

On May 23, 2023, the Centers for Medicare and Medicaid Services announced a new proposed rule related to the Medicaid Drug Rebate Program (MDRP) and other Medicaid drug pricing, reimbursement and data collection issues. While much of the proposed rule focuses on regulatory changes conforming to legislation affecting the MDRP enacted in recent years as […]

Medicaid Drug Rebate Program News and Notes

As part of its fiscal year 2024 budget, the Biden Administration proposed several Medicaid and CHIP policies related to the Medicaid Drug Rebate Program, which I covered in a recent blog.  But over the last few months, there have been two other Medicaid drug rebate developments that are worth highlighting: Puerto Rico joins the Medicaid […]

Medicaid and CHIP Drug Rebate Proposals in the Biden Administration’s Fiscal Year 2024 Budget

Under the highly effective Medicaid Drug Rebate Program (MDRP), drug manufacturers must provide substantial rebates to the federal government and states as a condition of having their drugs covered by Medicaid.  For brand-name drugs, the rebates apply to  both fee-for-service and Medicaid managed care and consist of two mandatory components.  First, under a basic rebate, […]

New MACPAC Data on the Highly Effective Medicaid Drug Rebate Program

As I have previously explained, under the highly effective Medicaid Drug Rebate Program, drug manufacturers must provide substantial rebates to the federal government and states as a condition of having their drugs covered by Medicaid.  The rebates apply to both fee-for-service and to managed care.  A groundbreaking 2021 Congressional Budget Office study found that compared […]