U.S. Rep. Adam Kinzinger, R-Channahon, recently introduced legislation that would force pharmaceutical companies to accurately calculate prices in the Medicaid drug rebate program and close a costly loophole to patients.
The Fair Accurate Medicaid Pricing Act, H.R. 3276, would close a loophole that costs taxpayers up to $600 million a year, according to a news release from the congressman’s office.
“For far too long, drug manufacturers have utilized a loophole in our Medicaid drug rebate system to reduce their own financial obligations by selling their authorized generic products at a lower price to secondary manufacturers,” Kinzinger said.
These lower prices are then included when calculating the rebate obligation the manufacturer owes to the federal and state governments, which leaves taxpayers responsible for more of the costs. Patients across the country are dying because they cannot afford the medication they need. This is unacceptable, and it has to stop.”
Kinzinger introduced the bill with his colleague in the House, U.S. Rep. Joe Kennedy, D-Massachusetts.
U.S. Reps. Jason Smith, R-Missouri, and Tom O’Halleran, R-Arizona, also cosponsored the bill.
U.S. Sens. Bill Cassidy, R-Louisiana, and Maggie Hassan, D-New Hampshire introduced a companion bill in the Senate.