Medicaid Reform And Rebates: State “Opt-Out” Proposed At Hearing

Medicaid rebates have been a fact of life in the pharmaceutical industry for 25 years. But the Affordable Care Act repeal-and-replace debate may open up the possibility of eliminating the mandatory rebates – and the requirement that all drugs be covered by the program.

Capitol House

An opt-out for states from the Medicaid rebate program could give them more latitude for responding to high-priced new product introductions, a former Ohio and District of Columbia Medicaid official told the House Energy and Commerce Health Subcommittee on Feb.1.

John McCarthy, the former director of the Ohio Medicaid program (and former deputy director of DC’s program) suggested in prepared...

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