[maxerickson]

Abusive drug pricing would go away nearly instantly if the Medicaid formula considered the lowest effective price paid (by accounting for rebates when calculating Average Manufacturer Price).

It's really only patented drugs where it matters, most generics in the US are all but free (the exceptions to that pattern mostly have few users).

[refurb]

What? AMP accounts for rebates.

Add in the Medicaid rebate and Medicaid pays almost the lowest price in the US for drugs. I think the VA is the only org paying a little less than that.