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Give an example of the manufacturer's best price requirement by OBRA90 (OBRA90 requires manufacturers provide drug products to Medicaid programs at their "best price")

User Mrduguo
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Final answer:

The manufacturer's best price requirement by OBRA90 mandates that drug manufacturers offer Medicaid programs the same low prices provided to their most favored customers.

Step-by-step explanation:

The manufacturer's best price requirement by OBRA90 (Omnibus Budget Reconciliation Act of 1990) is a statute that requires drug manufacturers to provide prescription drugs to Medicaid programs at the lowest price they offer to any other buyer. This mandate ensures that Medicaid, which is a public health insurance program for individuals with limited income and resources, receives the same advantageous pricing as the most favored customers of the drug companies. An example of this could be if a drug manufacturer typically sells a medication to a commercial pharmacy chain at $100 per unit but offers the same medication at a discounted rate of $80 per unit to a veterans' hospital, Medicaid would also be entitled to purchase the medication at the discounted price of $80 per unit. This policy aims to control costs and prevent manufacturers from charging higher prices to Medicaid while offering discounts to other buyers.

User Ozden
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