The Perils of Increasing Medicaid Rebates for Drugs with Accelerated Approval

The author cautions that proposals to increase Medicaid rebates for drugs with accelerated approval could have unintended consequences, including incentivizing manufacturers to raise baseline prices, introduce drugs at higher starting prices, or forgo the accelerated pathway altogether. If rebates outweigh the financial benefits of earlier market entry, manufacturers may opt for traditional approval, undermining the program’s purpose of accelerating patient access.