Episode 87 — Drug Pricing: What’s in the New CMS Medicaid Final Rule?

The Centers for Medicare & Medicaid Services (CMS) recently published its final rule to implement the Medicaid Services Investment and Accountability Act of 2019 (MSIAA). The final rule significantly deviates from the agency’s 2023 proposal, with CMS backing off from “follow the pill” best price stacking, subjecting certain vaccines to Medicaid rebates, and creating a “shame list” of high-cost Medicaid drugs, among other proposals. But the final rule still imposes new burdens on manufacturers, such as by expanding which type of utilization triggers a Medicaid rebate and imposing aggressive compliance deadlines in connection with misclassifications.

In this episode of Connected With Latham, Washington, D.C. partner Chris Schott and associate Danny Machado break down what CMS included — and omitted — from its final rule.  They also speculate about the impact the Supreme Court’s overturning of the Chevron doctrine might have had on CMS’ regulatory decision-making, as well as why the final rule’s effective date is 60 days before the next presidential inauguration.

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