States struggle with rising Medicaid drug costs

States struggle with rising Medicaid drug costs
By Nathaniel Weixel, The Hill Extra

Spending on prescription drugs has been growing in recent years, mostly because of the introduction of expensive specialty drugs, like those to treat hepatitis C. Medicaid has price controls in the form of required rebates paid by the manufacturer, as well as the ability of states and plans to negotiate supplemental rebates, but those often aren’t enough. States also need predictability to balance their budgets, but a company dramatically raising the price of its drug multiple times a year can throw that into chaos.

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