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Medicaid rebates offset drug price hikes: report
Modern Healthcare

The price increases for brand-name drugs covered by Medicaid outpaced the inflation rate from 2005 to 2010, yet rebates paid by the manufacturers as part of the Medicaid drug rebate program offset the increases, according to a report from HHS’ Office of the Inspector General. The report found that whole acquisitions costs rose 34%, average manufacturer prices increased by 40%, and Medicaid payment amounts went up 39% during the five-year period. During the same period, the inflation rate increased by 13% based on the consumer price index.