The Biden Administration recently announced that a new proposal will increase transparency of prescription drugs offered through Medicaid.
According to a press release, the U.S. Department of Health and Human Services, through the Centers for Medicare & Medicaid Services (CMS) recently announced a notice of proposed rulemaking (NPRM) that would increase the ability of Medicaid to demand information form drug manufacturers on what it actually costs to manufacture and distribute drugs on the market today. This action will increase transparency of prescription drug costs, transparency of managed care plans and transparency in drug classifications
“This proposed rule prioritizes CMS’ role as a good steward of Medicaid dollars while also strengthening program integrity and the management of pharmacy benefits for people with Medicaid coverage,” said CMS Administrator Chiquita Brooks-LaSure. “We’re committed to preserving access to life-saving treatments and securing fiscal sustainability for the Medicaid program, which remains a lifeline for millions of people.”
This action will advance the Biden administration's primary goal of lowering the cost of prescription drug costs in America. To this end, the administration has created the Medicare Prescription Drug Inflation Rebate Program and passed a new prescription drug law which requires drug companies to pay rebates to Medicare when the cost of certain prescription drugs administered to people with Medicare increases faster than the rate of inflation.
“President Biden is not only committed to protecting Medicaid, but continues to take bold actions to strengthen the program,” said HHS Secretary Xavier Becerra. “With today’s proposed rule, we are advancing unprecedented efforts to increase transparency in prescription drug costs, being good stewards of the Medicaid program, and protecting its financial integrity. This proposed rule will save both states and the federal government money.”
