Drugmakers Win Challenge to Medicaid Drug Price Rebate Rule

A rule issued by the Centers for Medicare and Medicaid Services that requires drugmakers to include discounts they offer directly to patients when calculating the “best price” of drugs for purposes of Medicaid’s drug rebate program exceeds the agency’s authority, a federal judge in D.C. ruled Tuesday.

The challenged rule, issued in 2020 by CMS, is inconsistent with the federal Medicaid rebate law, which requires drug producers to pay statutorily determined rates to state Medicaid programs, Judge Carl J. Nichols of the US District Court for the District of Columbia said.

Rebate rates are calculated using the lowest price at ...