From Health Affairs Today <[email protected]>
Subject Generic Drug Inflationary Rebates Saved Billions
Date June 29, 2023 9:22 PM
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Thursday, June 29, 2023 | The Latest Research, Commentary, And News From
Health Affairs

 

Today's newsletter highlights an article from Benjamin Rome and
colleagues on the expansion of the Medicaid Drug Rebate Program since
2017.

 

Savings Through Drug Rebates

The Medicaid Drug Rebate Program requires state Medicaid programs to
cover nearly all FDA-approved prescription drugs. In exchange, drug
manufacturers are mandated to provide rebates that offset high prices.

While this program initially only applied to brand-name drugs, Congress
expanded it to include generic drugs in 2017.

In their recently published Health Affairs article, Benjamin Rome and
colleagues at Harvard investigate the effects of this expansion
<[link removed]>.

Using Medicaid State Drug Utilization Data, Rome and coauthors determine
that during the study period 2017-20, "approximately one in four
generic drugs triggered an inflationary rebate each quarter," and
inflationary rebates offset an estimated 2-12 percent of the $54
billion total Medicaid generic drug spending.

These findings suggest that inflationary rebates contributed to
significant savings in Medicaid generic drug spending and could allow
for resources to be distributed to other Medicaid programs.

Read the Article
<[link removed]>


 

Elsewhere at Health Affairs

In the next article in Health Affairs' new

**Forefront** series, Private Sector Solutions for Health Equity
<[link removed]>,
author Adaeze Enekwechi argues that we should plan to leverage all forms
of capital
<[link removed]>-public,
private, and nonprofit alike-and work toward aligning incentives to
support the goals of improving health for all.

Health Affairs is grateful to CVS Health <[link removed]>
for supporting this work.

Also in Forefront, Aoife McDermott and colleagues discuss measuring the
impact of interventions to retain health care staff
<[link removed]>.

And January Angeles writes about how states setting health care spending
growth targets experienced accelerated growth in 2021
<[link removed]>.

 

Elevating Voices

During June, we're highlighting influential voices and organizations who
have made an impact on LGBTQ+ health equity and policy.

Did you know?

This month, the Human Rights Campaign (HRC) declared a state of
emergency for LGBTQ+ people in the US for the first time in its 40+ year
history
<[link removed]>.

More than 75 anti-LGBTQ+ bills have been signed into law in 2023 thus
far, which the HRC highlights in their latest report. According to the
report, "...30.9% of all transgender youth age 13-17 are living in
states where they can no longer access life-saving, best practices
medical care."

 

Daily Digest

Private Capital Is A Key Component To Improving Health Equity
<[link removed]>
Adaeze Enekwechi

Measuring The Impact Of Interventions To Retain Health Care Staff
<[link removed]>

Aoife McDermott et al.

Inflationary Rebates For Generic Drugs Sold Through Medicaid Saved
Billions During 2017-20
<[link removed]>

Benjamin N. Rome et al.

States Setting Health Care Spending Growth Targets Experienced
Accelerated Growth in 2021
<[link removed]>
January Angeles

 

[link removed]


 

About Health Affairs

Health Affairs is the leading peer-reviewed journal
<[link removed]> at the intersection of health,
health care, and policy. Published monthly by Project HOPE, the journal
is available in print and online. Late-breaking content is also found
through healthaffairs.org <[link removed]>, Health
Affairs Today <[link removed]>, and Health
Affairs Sunday Update <[link removed]>.  

Project HOPE <[link removed]> is a global health and
humanitarian relief organization that places power in the hands of local
health care workers to save lives across the globe. Project HOPE has
published Health Affairs since 1981.

Copyright © Project HOPE: The People-to-People Health Foundation, Inc.

Health Affairs, 1220 19th Street, NW, Suite 800, Washington, DC 20036, United States

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