AHF Thanks Senators Grassley and Wyden for Bill to Prevent Drug Companies from Gouging Medicaid

Duo jointly sponsored the “Right Rebate Act of 2018,” which would
give authority to the U.S. Health and Human Services Department (HHS) to
fine drug companies that willfully misclassify products in Medicaid and
would allow HHS to recover rebate payments

WASHINGTON–(BUSINESS WIRE)–AIDS Healthcare Foundation (AHF)
today applauded the introduction of legislation that would prevent drug
companies from price-gouging Medicaid, the national health care program
for the poor.

Incoming chairman of the powerful U.S. Senate Finance Committee Charles
Grassley
(R-Iowa) and its ranking minority member U.S. Senator Ron
Wyden
(D-Oregon) jointly sponsored the “Right
Rebate Act of 2018
” which would give authority to the U.S. Health
and Human Services Department (HHS) to fine drug companies that
willfully misclassify products in Medicaid and would allow HHS to
recover rebate payments.

The bill is in part a reaction to the drug company Mylan
misclassifying its EpiPen as a generic drug for purposes of Medicaid
payments even though the HHS Centers for Medicare & Medicaid Services (CMS)
warned them to stop (background
on bill
). The HHS inspector general has uncovered that 885 drugs
were similarly misclassified, costing the government billions of dollars
in unpaid rebates. The new legislation will give HHS the authority to
compel drug companies to correct these deliberate misclassifications.

“We’re very encouraged that Senators Grassley and Wyden, in a welcome
spirit of bipartisanship, are tackling the rapacious record of the drug
industry. With nearly forty percent of people living with HIV in the US
depending on Medicaid to keep them in care, this bill will help stop
rich drug companies from ripping off the poor,” said AHF’s President Michael
Weinstein
.

About AIDS Healthcare Foundation

AIDS Healthcare Foundation (AHF), the largest global AIDS
organization, currently provides medical care and/or services to more
than one million individuals in 42 countries worldwide in the US,
Africa, Latin America/Caribbean, the Asia/Pacific Region and Eastern
Europe. To learn more about AHF, please visit our website: www.aidshealth.org,
find us on Facebook: www.facebook.com/aidshealth
and follow us on Twitter: @aidshealthcare.

Contacts

WASHINGTON
John Hassell, National Director of Advocacy, AHF
+1.202.774.4854
[cell] John.hassell@aidshealth.org

LOS ANGELES
Ged Kenslea, Senior Director, Communications, AHF
+1.323.791.5526
[cell] +1.323.308.1833 [work] gedk@aidshealth.org