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HHS OIG Audit – Review of Generic Drug Price Increases

Review of Generic Drug Price Increases (A-06-07-00042), October 24, 2007: “Generic drug price increases exceeded the specified statutory inflation factor applicable to brand-name drugs for 35 percent of the quarterly average manufacturer prices reviewed. If the provision for brand-name drugs were extended to generic drugs, the Medicaid program would receive additional rebates. By applying the method in the Social Security Act for calculating additional rebates on brand-name drugs to generic drugs, we calculated that the Medicaid program would have received a total of $966 million in additional rebates for the top 200 generic drugs, ranked by Medicaid reimbursement, from 1991 through 2004.”

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