[e-drug] Price Control Mechanism (2)

["Kevin Outterson" <Kevin.Outterson@mail.wvu.edu>]

E-DRUG: Price Control Mechanism (2)
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While the USA does not have general price controls on drugs, many
categories of drugs have government-mandated price reductions.  For
example, the US Medicaid program (serving 40 million poor people)
requires drug companies to offer it their 'best price' and to pay both
mandatory and supplemental rebates to the program.  The US Public Health
Service's 340b program pays even less for its drugs; the US Veterans
Administration pays prices well below the US average, more in line with
UK prices.  You can see these prices on the US 'federal supply
schedule'.  So it is a simplification to say the US has no price
controls.

Kevin Outterson

Associate Professor of Law
West Virginia University
304 293 8282
kevin.outterson@mail.wvu.edu
LL.M. (Cantab.)
J.D. (Northwestern)