Medicaid Drug Formulary Ideas Floated, But US Manufacturers Are Skeptical

Medicaid formularies capable of excluding drugs to drive better rebates could replace the existing drug rebate program, lobbyists suggest, but US manufacturers worry that lawmakers will be leery of losing statutory-based rebates.

US dollars and pills

Lobbyists in the US are offering ideas for lowering prescription drug costs in Medicaid through the use of more restrictive formularies and rigorous price negotiation as Congress and the Administration work on a plan to refashion the program as part of the legislation to “repeal and replace” the Affordable Care Act.

The general idea being circulated is to allow programs to use formularies to more aggressively negotiate for rebates. Currently, all...

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