How Might Current Federal Drug Pricing Proposals Impact Medicaid?

(By Rachel Dolan for Kaiser Family Foundation published May 24, 2021)

Prescription drug spending has again returned to the policy agenda, with Congress and the Administration developing proposals to target drug prices. Though attention in current federal actions is largely focused on Medicare and private insurance drug prices, federal legislation also has been recently introduced or enacted that would affect Medicaid prescription drug policy. In 2019, Medicaid gross drug spending was $66 billion and $37 billion was offset by rebates, resulting in $29 billion of net spending that is shared by states and the federal government. A separate analysis examines an array of leading federal and state policy drug pricing proposals and implications for Medicaid. A number of these proposals are included in two key bills that have been reintroduced in the 117th Congress: H.R. 3, The Elijah E. Cummings Lower Drug Costs Now Act, passed the house in 2019, it did not become law and has since been reintroduced in the 117th Congress. H.R. 19, The Lower Costs More Cures Act has also been reintroduced (Figure 1).  Continue reading the brief here…

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