Health Care and Life Sciences > Health Reform Resource Center > CMS Issues Guidance on Medicaid Drug Rebates
22 Apr '10

CMS has issued a guidance letter on Section 2501 of the Patient Protection and Affordable Care Act and Section 1206 of the Reconciliation Act addressing “the increased rebate percentages for covered outpatient drugs dispensed to Medicaid patients, the extension of prescription drug rebates to covered outpatient drugs dispensed to enrollees of Medicaid managed care organizations (MCOs) and the rebate offset associated with the increase in the rebate percentages.” The letter describes the increase in the minimum rebate percentage for single source and innovator multiple source (brand name) drugs, with certain exceptions, from 15.1 percent of the average manufacturer price (AMP) to 23.1 percent of AMP effective January 1, 2010, as well as the extension of rebates for drugs dispensed by MCOs to Medicaid patients, and the rebate offset associated with the increase in rebates achieved via changes required in the legislation.

To read the guidance letter, click here.