WASHINGTON — House Democrats are expected to insert a controversial Medicaid drug pricing policy into a fast-moving Covid-19 relief bill, several health care lobbyists and a congressional aide briefed on the package told STAT.
The policy aims to help states recoup some of the costs they incur in their Medicaid programs when drug makers hike the prices of certain drugs. Right now, federal law caps how much states can collect. Congress’ new policy would rescind that so-called “Medicaid rebate cap.”
The policy will have the biggest impact on drugs like insulin, which have seen massive price hikes and for which drug makers also give big discounts to private insurers. The policy could allow states to demand such deep discounts, in some cases, that drug makers would actually end up owing states money every time a Medicaid beneficiary fills a prescription.
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