Require generic drug companies to pay an additional rebate to Medicaid if their drug prices rise faster than inflation.
Brand name drug makers have to pay a rebate to Medicaid if their drug prices rise faster than inflation. This provision ensures generic drug companies are subject to the same rules. Nearly 10 percent of generic drugs more than doubled in price last year. According to the nonpartisan Congressional Budget Office, this policy will save the federal government $1 billion over 10 years.