The Senate's budget package that passed Sept. 26 included legislation that increases the amount drugmakers must pay in rebates for Medicaid. The legislation was signed into law by the president Sept. 27.
The "Fair and Accurate Medicaid Pricing Act," introduced by Sens. Maggie Hassan, D-N.H., and Bill Cassidy, MD, R-La., closes a loophole that allowed drugmakers to underpay rebates to Medicaid, which increased state and federal costs for prescription drugs.
The legislation no longer allows generic drugs to be used in calculations for the average manufacturer price. The senators predict this will save taxpayers approximately $3.1 billion over the next 10 years.
"This will fix a rigged system allowing companies to price gouge taxpayers and patients," Sen. Cassidy said.
Read the full news release here.
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