Medi-Cal supplemental rebate program not explicitly exempted from prohibition in conference Medicaid bill.

Executive Summary

MEDI-CAL SUPPLEMENTAL REBATE PROGRAM NOT EXPLICITLY EXEMPTED under the House/Senate conference agreement on the Budget Reconciliation Act (HR 2491), which received final passage by the House Nov. 20. The conference agreement provides that "no rebates shall be required to be paid by manufacturers with respect to covered outpatient drugs furnished to individuals in any State that provides for the collection of such rebates in excess of the rebate amount" of 15% of average manufacturer price or "best price," as provided in the bill ("The Pink Sheet" Nov. 20, p. 3).