OIG report sheds light on Medicaid generics rebates

A report from HHS's Office of the Inspector General estimated that Medicaid would have received an additional $1.4 billion in rebates from manufacturers of the top 200 generic drugs during 2005-14 if generics manufacturers were held to the same inflation-based rebate standards as branded drug makers. The report said Medicaid received $1 billion in actual rebates from generics manufacturers during the same period.

Starting in 1Q17, generics manufacturers will be required to pay additional rebates to Medicaid if a drug's average manufacturer price (AMP) increases faster than inflation, a provision that already applies to branded drugs. The new requirement was part of a budget bill signed into law by President Obama on Nov. 2 (see BioCentury Extra, Oct. 30). ...