Lawmakers Seek to Curb Skyrocketing Generic Drug Prices

Wednesday, May 27, 2015

Source: FDA News

Two prominent lawmakers are following through on a promise to do something about recent rises in generic drug prices, with identical House and Senate bills that would force generic drugmakers to pay state Medicaid rebates when prices rise faster than inflation.

The Medicaid Generic Drug Price Fairness Act of 2015, introduced Monday by Sen. Bernie Sanders (I-Vt.) and Rep. Elijah Cummings (D-Md.), follows concerns over generic drug price hikes outlined in February letters to HHS Inspector General Daniel Levinson.

These inflationary rebates are standard practice for branded drugmakers. Generics drugmakers, by contrast, pay state Medicaid programs a base rebate of 13 percent. An inflationary rebate would likely be considerably higher, as many generic drug prices have risen at rates greatly exceeding the inflation rate, a spokeswoman for Sanders said.

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Lawmakers Seek to Curb Skyrocketing Generic Drug Prices

Wednesday, May 27, 2015

Source: FDA News

Two prominent lawmakers are following through on a promise to do something about recent rises in generic drug prices, with identical House and Senate bills that would force generic drugmakers to pay state Medicaid rebates when prices rise faster than inflation.

The Medicaid Generic Drug Price Fairness Act of 2015, introduced Monday by Sen. Bernie Sanders (I-Vt.) and Rep. Elijah Cummings (D-Md.), follows concerns over generic drug price hikes outlined in February letters to HHS Inspector General Daniel Levinson.

 

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