The companies said they decided to lower costs to ensure that patients could afford their medications. But Novo Nordisk and Sanofi's changes kick in on Jan. 1 andWhat this means:
Federal law tries to ensure that Medicaid pays the lowest possible price for prescription drugs, and manufacturers who want their product covered have to agree to pay a rebate. If a drug manufacturer raises its prices faster than inflation, then the rebate they pay also increases.so much that the rebate owed was higher than the price of the drug. But the law limited what drugmakers to the insulin's price.
That will end on Jan. 1, when a requirement from the American Rescue Plan takes hold. Then, Eli Lilly, Sanofi and Novo Nordisk's new low costs will save them from owing the government millions. Additionally, with the price drop, Medicaid will likely end up paying the companies more in order to purchase and cover their drugs, perEli Lily is avoiding paying around $430 million per year in new Medicaid rebates and Novo Nordisk would save $350 million, Spencer Perlman, the director of health care research at Veda Partners, told
As the thousands of others continue to spike under the protection provided by Biden. You never hear about that side of it.