Congress considering scrapping Medicaid drug rebate caps

House Democrats are starting what is certain to be a sustained effort to reduce U.S. drug prices by targeting a cap on Medicaid drug rebates that manufacturers must pay when price increases exceed inflation.

Legislation unveiled Tuesday by the Energy & Commerce Committee seeks to scrap the Medicaid drug rebate cap starting in 2023. The legislation is part of a $1.9 trillion COVID-19 relief bill that Democrats expect to pass by mid-March using budget reconciliation procedures. ...