A newly proposed cost-cutting rule implemented into the US Medicaid programme could save the country up to $17.7bn over five years, say US health officials.

The proposed rule on prescription drugs purchased through the state / federal programme is aimed at increasing the transparency in the pricing of prescription drugs, ensuring that both taxpayers and states are not overcharged.

The provisions, issued by the Centers for Medicare and Medicare Services, will be implemented into the Affordable Care Act.

Costs would be reduced by increasing rebates paid by drug manufactures participating in the Medicaid programme, providing rebates for medicines earmarked for patients enrolled in a Medicaid managed care organisation and aligning the amount of reimbursement to coincide with the actual price a pharmacy pays for prescription drugs.

Under the new rule, the minimum rebate supplied by pharmaceutical companies for single-source and innovator multiple-source drugs from the current 15.1% of average manufacturer prices to 23.1%, while non-innovator generics will witness a 2% increase to 13%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

A minimum rebate from specific single-course and innovator multiple-source clotting factors will also be established, set at 17.1% of the average manufacturer price.

Centers for Medicare and Medicare Services plans to issue a final version of the act in 2013, and has set a final date of 2 April 2011, for comment on the proposed revisions.