OIG Will Look Into Impact of Rising Generic Drug Prices on Medicaid

April 15, 2015

Following prodding from Congressional lawmakers, the Office of the Inspector General of HHS says it will conduct a new review of generic drug price increases on the Medicaid drug rebate program.

Following prodding from Congressional lawmakers, the Office of the Inspector General (OIG) of HHS says it will conduct a new review of generic drug price increases on the Medicaid drug rebate program.

The agency plans to review price increases between 2005 and 2014 in order to determine the extent to which generic drug prices exceeded the inflation rate, according to a letter the OIG sent to US Sen Bernie Sanders, I-Vermont, and US Rep Elijah Cummings, D-Maryland.

The move comes amid growing debate over the cost of prescription drugs, and the budgetary strain placed on payers, both private and public. Generally, the issue had been confined to brand-name medicines, but last year, there were reports that prices for some generic drugs were also rising. This came as a surprise, given that generics are traditionally seen as a low-cost alternative for patients.

Read more at the Wall Stree Journal's Pharmalot blog: http://on.wsj.com/1JKpgjh