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Bipartisan Deal Includes Important Step to Control Medicaid Drug Prices, But More Efforts Are Needed

Line Extension in Medicaid Drug Pricing

The CREATES Act, designed to curb brand-name drug manufacturers’ use of anticompetitive tactics to block access to generic drugs, didn’t make it into the Bipartisan Budget Act of 2018. But Congress did include legislation to reduce prescription drug prices and costs. Likely the least understood part of that legislation is a technical fix to how the Medicaid program pays for “line extensions,” or drugs that have undergone minor changes from their original versions — sometimes referred to as “new formulation drugs.” Former congressman Henry Waxman and Bill Corr and Kristi Martin explain on To the Point.

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