4 months in the past, a small prescription drugs firm purchased a medication used to fight a uncommon development dysfunction in kids and shortly raised the checklist value by 150%.
Such a dramatic enhance — from $5,882 to $14,705 per vial — is the kind of transfer that usually attracts consideration at a time when many Individuals complain about rising drug prices. However the firm, Eton Prescription drugs, argues there is no such thing as a different solution to preserve its remedy available on the market and make a revenue. However its choice entails a calculated twist: a willingness to take a hefty loss on every Medicaid affected person.
The gambit was prompted by the penalties that corporations should pay to Medicaid once they increase the value of a medication above the inflation charge, a consequence of a provision in a federal legislation that went into impact in early 2024. Because of the American Rescue Plan Act, pharmaceutical corporations at the moment are required to pay that distinction within the type of a rebate to the federal government well being care program.
This text is unique to STAT+ subscribers
Unlock this text — plus in-depth evaluation, newsletters, premium occasions, and information alerts.
Have already got an account? Log in
To learn the remainder of this story subscribe to STAT+.
