Rising prescription drug costs are a major budgetary concern for state Medicaid programs, as Medicaid is required to cover any drug that is approved by the Food and Drug Administration (FDA) in exchange for mandatory rebates from drug manufacturers. Drugs that are approved under the FDA’s accelerated approval pathway, which requires less rigorous data, are often particularly expensive and sometimes have unclear clinical benefits. MACPAC recently discussed a recommendation to enhance mandatory rebates for drugs approved under this accelerated pathway.
On behalf of the state Medicaid directors, NAMD wrote a letter of support for this recommendation. Increased rebates would help states afford coverage of these expensive therapies, while also providing an incentive for manufacturers to quickly complete post-marketing clinical trials for these drugs