Medicaid drug rebate bill (HR 2890)

Executive Summary

Passes House by voice vote Sept. 22. The measure would amend OBRA '90 by exempting discount prices offered by drug manufacturers to the Veterans Affairs Department, Defense Department, PHS-funded clinics and other government purchasers from Medicaid rebate calculations. It also would guarantee that such purchasers can buy pharmaceuticals at prices at least as low as those obtained by Medicaid, and ensure that prices to V-A are at least 24% lower than those paid by wholesalers for products resold to retail pharmacies. In addition, the bill would raise minimum rebates for Medicaid from 15% to 15.7% in 1993, 15.4% in 1994, 15.2% in 1995 and 15.1% in 1996.