Lawmakers propose Medicaid rebates for generic price hikes

U.S. Sen. Bernie Sanders (I-Vt.) and Rep. Elijah Cummings (D-Md.) introduced legislation in the Senate and House that would require generic drug makers to pay rebates to state Medicaid programs when they raise drug prices at a faster rate than inflation. Brand name drug manufacturers are already required to pay similar rebates.

According to the lawmakers, the Congressional Budget Office estimated the proposed Medicaid Generic Drug Price Fairness Act (S. 2948, H.R. 5748) would save $500 million over 10 years. ...