According to the Department of Health and Human Services OIG, Medicaid could save $14 billion if Congress allowed them to control cost increases as they do with branded drugs.
When branded pharmaceutical prices increase faster than inflation, manufacturers are required to provide a rebate to Medicaid to cover the difference; however, no such provision exists for generic products. As a result, when a generic company becomes the sole source for a product and increases prices dramatically, Medicaid is forced to pay for these cost increases.
Learn more at Fierce HealthPayer.