November 18, 2011—Congressional Democrats released a deficit reduction plan last week including a proposal to increase Medicaid rebates, which would save $20 billion over 10 years. The plan would increase the additional rebate manufacturers pay to Medicaid when a drug’s average manufacturer price (AMP) increases by more than the rate of inflation. Such an increase in Medicaid rebates could lower 340B ceiling prices, increasing 340B provider savings.
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