Healthy Skepticism Library item: 9387

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Congress compromises on Medicaid drug pricing; 'best price' excludes VA, others.
Am J Hosp Pharm. 1993 Jan; 50:(1):16, 19

Abstract:

The effects of the Veterans Health Care Act of 1992, which was passed in October of 1992, on the use of best price in computing drug manufacturers’ rebates to Medicaid programs for outpatient prescriptions are discussed. Excluded from the calculation of best price are drug prices paid by the Department of Veterans Affairs (VA) and the Department of Defense (DOD). VA and DOD will receive a 24% discount off average manufacturer’s price. Medicaid is prohibited from using VA and DOD prices as best price for computing future rebates, but to compensate for this loss the minimum rebate available to Medicaid, originally set at 12%, was raised. Thus, for 1993, the Medicaid rebate will be the greater of either (1) 15% of the average manufacturer’s price (AMP) or (2) the difference between AMP and best price.

Keywords:
Drug Industry/economics* Drug Industry/legislation & jurisprudence Humans Medicaid*/economics Medicaid*/legislation & jurisprudence United States United States Department of Veterans Affairs/economics* United States Department of Veterans Affairs/legislation & jurisprudence