ALG opposes lifting the existing Medicaid rebate cap for outpatient drugs

June 14, 2019, Fairfax, Va.–Americans for Limited Government President issued the following statement in opposition to H.R. 107 that lifts the existing Medicaid rebate cap for outpatient drugs:

“Americans for Limited Government joins Americans for Tax Reform, Citizens Against Government Waste and the National Taxpayers Union in opposing H.R. 107. The government should not make a profit from compelling drug manufacturers to pay the government more than average cost to supply their medicine through Medicaid. This is a clear case where the profit the government would make would be offset by higher prices by non-Medicaid consumers of the drug who will have their costs increase.  Drugs are one of the few places where the pricing market is so distorted that taxes do directly get passed through to the consumer.”

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