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Potential Recommendations on Medicaid Outpatient Drug Rebates

This presentation considered three potential changes that the Commission could recommend to strengthen Medicaid’s drug rebate program:

  • correcting the line extension drug formula,
  • excluding authorized generics from the average manufacturer price of the brand drug, and
  • strengthening federal oversight.

Discussion focused on the merits of these recommendations and their effects on state and federal budgets, drug manufacturers, and beneficiaries.