BioCentury
ARTICLE | Politics & Policy

Senators call for review of Medicaid rebate program

September 20, 2016 7:00 AM UTC

In a letter to HHS Inspector General Daniel Levinson, 14 U.S. Senate Republicans requested a review of CMS's oversight of the Medicaid Drug Rebate Program (MDRP), saying they are "concerned that the controls in place, if any, are inadequate to ensure that Medicaid is receiving the full amount of rebates afforded to it by law." Controversy over increases in the price of EpiPen from Mylan N.V. (NASDAQ:MYL) has provoked concerns about the broader issue of Medicaid rebates.

The authors said a recent National Association of Medicaid Directors (NAMD) memo suggests Mylan is "taking advantage of the MDRP" because classification of EpiPen as a generic allows the company to pay smaller rebates to Medicaid programs than the rebates for branded drugs. According to the Senators' letter, MDRP stipulates that drug makers pay a 23.1% rebate for branded drugs and 13% for generics. ...