Federal Agency Proposes Penalties if Pharma Forgoes Clinical Trials

April 22, 2021

The Medicaid and CHIP Payment and Access Commission has voted to demand pharma companies pay higher Medicaid rebates if they forgo certain clinical trials to determine medication efficacy. This move could lead to lower drug prices, should Congress follow the recommendation.

“Specifically, the Medicaid and CHIP Payment and Access Commission, or MACPAC, on Friday voted 16-to-1 to boost two different types of rebates that drug makers would have to offer Medicaid if they fail to complete so-called confirmatory trials. Although Congress has to act on the recommendation, the agency hopes that drug makers will be moved to complete these trials rather than take a hit on revenue.” Read more here.

(Source: Ed Silverman, STAT News, 4/12/21)

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