REPORT: Trump administration ends Medicaid loophole in drug rebates

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BY TEAM DML / AUGUST 9, 2018 /

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As the most reliable and balanced news aggregation service on the internet, DML News offers the following information published by WASHINGTONEXAMINER.COM:

Drug companies will be unable to game a requirement to give states large prescription rebates through Medicaid under a law the Trump administration implemented Thursday.

The guidance closes a loophole that drug companies exploited by making superficial changes to existing drugs to inflate their costs and thus pay states less than they owed. The changes allowed drug companies to treat the medicines as new drugs and change the rebate calculation.

The article goes on to state the following:

“This is the kind of abusive behavior from drug companies that this administration will not tolerate,” said Health and Human Services Secretary Alex Azar in announcing the change at the American Legislative Exchange Council in New Orleans.

The rules around these types of drugs, known as “line extensions,” were changed under legislation President Trump signed into law in February.

Drug companies are required by law to give rebates to states to cover people under Medicaid, who are low-income

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DML News offered you the above information as part of our ongoing effort to educate and inform people around the world. You can obtain additional information by visiting WASHINGTONEXAMINER.COM

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