OIG Report Calls for Rebates on Generic Drugs
Medicaid could have saved $1.4 billion between 2005 and 2014 if drugmakers had been required to offer rebates whenever prices for generics soared past inflation, according to a report issued by the HHS Office of the Inspector General.
Commissioned by Sen. Bernie Sanders (I-Vt.), the report examined the extent to which generic drug price increases have exceeded the statutory inflation factor used in the rebate calculation for branded versions.
The report’s findings showed that 22 percent of the quarterly average manufacturer prices exceeded inflation for the top 200 generic drugs. Roughly 139 drugs exceeded their inflation-adjusted baseline AMPs, according to the report.
Read the report here: www.fdanews.com/12-17-15-OIGReport.pdf.