Proposed Budget Deal Would Add Medicaid Inflation Rebates for Generic Drugs

October 29, 2015

Jacquelyn Godin and Joseph Metro (JDSupra, 10/29) commented on the “two-year, $80 billion budget/debt-ceiling deal that includes Medicare and Medicaid ‘offsets’ to finance other spending.” The proposed Bipartisan Budget Act of 2015 (BBA) contains a change “to the Medicaid rebate program with implications for Public Health Service 340B program pricing as well. … From a financial perspective, the additional rebates have the potential to increase Medicaid rebate liabilities and to decrease 340B program prices for generic products.”