Members of Congress have requested the Office of Inspector General of the U.S. Department of Health and Human Services look into increases in generic drug prices on the Medicaid drug rebate program. As the cost of prescription drugs increases, brand-named medicine prices have been debated, but not lawmakers want the OIG to look into generic prices as well. Lawmakers are concerned that generic drug prices are increases faster than the inflation rate. In November 2014, data showed “prices for generics sold through retail pharmacies increased 37% from the previous quarter and that prices for certain generic drugs had risen over the past year by as much as 1,000% or more.”

Lawmakers have introduced a bill that will require generic drug manufacturers to pay an additional rebate to Medicaid for “any medicine that increases in price faster than the inflation rate.” In response to the review, a representative for the generic drug industry noted, “if Congress wants to explore ways to keep costs down it could increase competition from generics by examining ways to address the growing backlog of generic applications and supporting a bio-similar policy that promotes competition.”

Read more at The Wall Street Journal