White Paper: The Medicaid Drug Rebate Program and Considerations for Generic Markets

White Paper: The Medicaid Drug Rebate Program and Considerations for Generic Markets

Generic drugs play a key role in the US healthcare system. In Medicaid, coverage of outpatient prescription drugs is governed by the Medicaid Drug Rebate Program (MDRP), which requires manufacturers to pay rebates in return for guaranteed coverage. These rebates include a base rebate and an inflation rebate that applies when a drug’s average manufacturer price (AMP) increases faster than the rate of inflation. Intended to restrain drug price inc…