Health Journalism Glossary

Medicaid best-price rule

  • Insurance

Medicaid’s best-price rule requires that state Medicaid programs pay the lowest price at which a drug is sold, meaning the reported best price must reflect all discounts, rebates, and other pricing adjustments. This price is the benchmark that the government uses to make sure that state Medicaid programs receive the lowest price for which a drug is being offered to any purchaser.

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