Legislation Lifting Maximum Cap on Medicaid Rebates Advances

The U.S. House Energy and Commerce Committee on Friday passed pandemic-relief legislation with language that could cause pharmaceutical manufacturers to owe states Medicaid drug rebates worth more than a drug’s average manufacturer price (AMP). It could also result in additional savings for 340B providers.

The E&C committee and 11 other House panels last week marked up their parts of the Biden administration and congressional Democrats’ COVID-19 relief agenda, written as components of fiscal 2021 budget legislation. The House Budget Committee this week is expected to weave the parts together and pass a single budget reconciliation/pandemic relief bill. Speaker Nancy Pelosi (D-Calif.) has said she aims to have full House pass the bill by the end of the month. Democrats want to get the relief bill through the Senate and on President Biden’s desk by March 14, when an estimated 11 million adults will begin losing pandemic unemployment benefits passed last year.

The U.S. House Energy and Commerce Committee on Friday passed pandemic-relief legislation with language that could cause pharmaceutical manufacturers to owe states Medicaid drug rebates worth more than a drug’s average manufacturer price (AMP). It could also result in additional savings for 340B providers.

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