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.”

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