Inflation-Based Rebates Need Not Apply
Patient Access Would be Threatened Should Penalties Hit Generic and Biosimilar Medicines Patients continue to struggle to afford the high cost of certain medications. High launch prices on new brand biologics and annual price increases on existing brand-name drugs, combined with an increasing trend of anti-competitive tactics designed to delay or prevent competition from more […]
Bates-White Report: CPI-Based Medicaid Rebates Harm Generic Competition
As a way of assessing the potential future impact of the CPI-based Medicaid Generics Penalty, Bates-White Economic Consulting examined publicly available data on historical drug prices and performed calculations of the potential impact of CPI-based rebates had they been in place in the past. This report shows evidence to suggest that in certain cases, these price […]
The Medicaid Generics Penalty: Understanding Market Dynamics (Part 2)
Continued from Part 1… The Medicaid Generics Penalty is paid by generic drug manufacturers when the “Average Manufacturer Price” (AMP) of a generic drug sold to Medicaid rises faster than the Consumer Price Index (CPI) over a three-month period. Ok, if generic drug prices usually trend downward, then the penalty really won’t affect generic manufacturers, […]
How the Medicaid Generics Penalty Jeopardizes Patient Access
Medicaid is a lifeline for more than 37 million children, more than 40 percent of all children with special health care needs, and more than 40 percent of all births. Originally designed to serve the poor, Medicaid now touches tens of millions of Americans who live above the poverty line. Generic drug pricing is one […]
The Medicaid Generics Penalty: A Primer (Part 1)
Starting this year, a poorly understood and relatively unknown policy imposes a new financial penalty on generic pharmaceuticals purchased by Medicaid — to the detriment of patients. The Medicaid Generics Penalty is thought by some to be merely an extension of a similar policy that applies to brand-name pharmaceuticals. In reality, however, the fundamentally different […]
AAM Issue Brief: Medicaid Generics Penalty
Costly Consequences: Medicaid Generics Penalty Threatens Patient Access to Affordable Medicine Starting in 2017, a new penalty is imposed on generic manufacturers participating in the Medicaid program for generic medicines with price increases exceeding the rate of inflation. The Medicaid Generics Penalty is modeled on a fundamentally different market, ignores the differences and highly competitive […]
The Medicaid Generics Penalty: Barrier to Generic Competition (Part 3)
Continued from Part 2… So maybe the penalty is unfair, but what’s going to happen other than some drug companies earning a little less money? It’s a deeper problem than just bad policy – it’s about uninterrupted patient access. Remember that generic manufacturers operate on profit margins thin enough that, even though the cost of […]
CPI Penalty on Medicaid Generic Drugs Threatens Patient Access to Affordable Medicine
WASHINGTON, DC (September 19, 2017) – Access to safe, affordable generic medication is a critical lifeline to millions of patients, with individuals and families receiving coverage under Medicaid coverage saw their prescription drug costs reduced by $512 on average last year. Yet a new penalty has been imposed on generic manufacturers participating in the Medicaid program […]
