CMS has implemented a new rule regarding reforms to the rebate and reimbursement systems for Medicaid prescription drugs under the Affordable Care Act.
The "Covered Outpatient Drugs" final rule will save federal and state governments $2.7 billion over the course of five years, according to CMS. Finalizing the rule is one of CMS' steps to ensure affordability and accessibility of prescription drugs.
The rule will not only guarantee Medicaid rebates correctly account for market prices, but also encourage pharmacies to use generic drugs by ensuring accurate cost reimbursement.
"This final rule makes changes that will save taxpayers billions and ultimately improve beneficiary access to prescription drugs," said Vikki Wachino, CMS deputy administrator and director of the Center for Medicaid and CHIP services.