Federal Drug Rebate Agreements

Federal Drug Rebate Agreements are contracts between drug manufacturers and the government, specifically Medicaid. Under these agreements, drugmakers give the government discounts or rebates on the price of medications sold to Medicaid patients. These rebates help lower healthcare costs for the government and ensure taxpayers aren’t overpaying for prescription drugs. The terms are negotiated to balance fair compensation for manufacturers while making medications more affordable for public health programs. Overall, these agreements promote access to necessary medicines while controlling public healthcare spending.