Eliminating the cap on rebates that drug manufacturers pay to Medicaid would save Medicaid about $16 billion over 10 years, the CBO estimates.

CBO Says Lifting Medicaid Drug Rebate Cap Would Save $16 Billion

The U.S. Congressional Budget Office (CBO) estimates that eliminating the limit on rebates that drug manufacturers pay to Medicaid, now capped at 100 percent of a drug’s average manufacturer price (AMP), “would reduce direct spending in Medicaid by $15.9 billion over the 2021-2030 period.”

The finding was in CBO’s “score” of the U.S. House Energy and Commerce Committee’s legislative contribution to the combined budget reconciliation/pandemic relief bill being fashioned by the Biden administration and congressional Democrats.

The U.S. Congressional Budget Office (CBO) estimates that eliminating the limit on rebates that drug manufacturers pay to Medicaid, now capped at 100 percent of a drug’s average manufacturer price (AMP), “would reduce direct spending in Medicaid by $15.9 billion over the 2021-2030 period.”

Please Login or Become a Paid Subscriber to View this Content

If you are already a paid subscriber, please follow the steps below.
If you are not yet a paid subscriber, please Subscribe now.
For questions about subscriptions or technical assistance, please contact Reshma Eggleston at reshma.eggleston@340breport.com.
« Read Previous Read Next »
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
×

*Sign up for news summaries and alerts from 340B Report