HHS Drops ‘Stacking’ Provision in Medicaid Drug Rebate Proposal

The Biden administration is stepping back from a proposal that would have changed how drugmakers calculate the “best price” they must offer Medicaid after receiving pushback from the pharmaceutical industry.

In an update released Wednesday, the Centers for Medicare & Medicaid Services said it won’t finalize a provision in the proposed rule (RIN 0938-AU28) that would have required companies to “stack” discounts and rebates throughout a transaction when reporting best prices for the Medicaid drug rebate program.

Instead, the agency said it will collect more information from manufacturers on their price calculation methodologies before pursuing changes through future ...