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CMS Letter to Medicaid Directors with Updates to Medicaid Drug Rebate Program

January 2011

Letter from the Centers for Medicare and Medicaid Services notifiying Medicaid Directors that "Section 2501 of the Affordable Care Act included changes to certain Medicaid drug rebate provisions, effective first quarter 2010. Several of these changes impact the Unit Rebate Amount (URA) calculation for drugs covered under the Medicaid Drug Rebate Program, including a new rebate percentage in the URA calculation for certain categories of drugs (e.g., innovator clotting factor drugs for which a separate furnishing payment is made under section 1842(o)(5) of the Social Security Act and innovator drugs approved by the FDA for exclusively pediatric indications). The Affordable Care Act also required that amounts attributable to these increased rebates be remitted to the Federal government."

CMS Letter to Medicaid Directors with Updates to Medicaid Drug Rebate Program