pills in bottle made of dollarsThe Right Rebate Act would give the U.S. Department of Health andHuman Services (HHS) the ability to fine companies that knowinglymisclassify drugs in the future. (Photo: Shutterstock)

Last month, Senators Chuck Grassley (R-Iowa) and Ron Wyden(D-Ore.) introduced new legislation to ensure that drugcompanies play by the rules of the Medicaid program. The bill isaimed at preventing drug companies from overcharging Medicaid, a practice that has beenconsistently costing taxpayers billions of dollars. While thelegislation is an excellent indicator of future bipartisan cooperation on the issue ofprescription drug affordability, much more needs to be done.

Grassley and Wyden's new bill, the Right Rebate Act, would givethe U.S. Department of Health and Human Services (HHS) the abilityto fine companies that knowingly misclassify drugs in the future.It would also give HHS the ability to directly adjust a drug'sclassification. The issue stems from drugs being misclassified bymanufacturers as generic when they should be classified as brandname.

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