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May 26, 2023

Biden Administration to Implement Medicaid Audit of Costly Drugs

Dan Tsai, director of the Center for Medicaid and Children’s Health Insurance Program Services, recently announced the Biden Administration’s newest attempt to curb prescription costs for Medicaid recipients. CMSwill conduct yearly audits of up to ten drug manufacturers, particularly those that cost Medicaid the most money. This decision comes after continued complaints from state leaders concerning their inability to negotiate with these manufacturers. While simply mandating public disclosure of drug pricing will likely not affect the actual prices, Tsai has stated that he hopes that making similar information readily available will place pressure on the manufacturers to keep prices reasonable for the more than 90 million Americans who are currently on Medicaid and CHIP. 

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