Medicaid to audit costly drug prices

WASHINGTON — The Biden administration said Tuesday it is planning to conduct a yearly audit to verify the prices drug makers charge on a handful of the costliest prescriptions covered by Medicaid.

Under the proposal, the Centers for Medicare and Medicaid Services would require as many as 10 drug makers every year to furnish the government with proprietary and non-proprietary information as evidence to support the price it charges states, which administer Medicaid.

Drugs that cost Medicaid the most money — some as much as $2 million per treatment — will be selected for the survey, prompted by rising drug prices and complaints from state leaders. More than 90 million people are enrolled in Medicaid and CHIP, which provides the poorest Americans with health insurance.