President Donald Trump’s administration on Thursday implemented a new law that will reportedly block drug companies from exploiting loopholes in Medicaid.
According to a Washington Examiner report, the guidance ends a loophole that enabled drugmakers to artificially inflate their prices for existing drugs and ultimately pay up less than they actually owed to states.
“This is the kind of abusive behavior from drug companies that this administration will not tolerate,” Health and Human Services Secretary Alex Azar said.
Government at the federal and state level can expect to see roughly $6.5 billion in savings over a decade from the rule change, according to the report.
To read the full report on the Washington Examiner, click here.