Bloomberg Law
Dec. 21, 2020, 10:03 PM

Drugmakers Win Wiggle Room for ‘Best Price’ Medicaid Contracts

Jacquie Lee
Jacquie Lee

Drug companies should soon have an easier time entering into contracts purporting the “value” of a drug due to a Medicaid policy released Monday by the Trump administration.

The policy from the Centers for Medicare & Medicaid Services is intended to encourage contracts where states can get a partial refund on a drug if it doesn’t work. Those sorts of contracts can save states money on expensive products.

Companies already have to offer Medicaid plans their lowest price for a drug, and each state gets the same low price. If a company wants to create a separate agreement for a ...