On March 28, 2019 CMS issued the Final Rule and Interim Final Rule with Comment Period: Medicaid Program; Covered Outpatient Drug; Finalization of Line Extension Definition; and Change to the Rebate Calculation for Line Extension Drugs.

On March 28, 2019 CMS issued the Final Rule and Interim Final Rule with Comment Period: Medicaid Program; Covered Outpatient Drug; Finalization of Line Extension Definition; and Change to the Rebate Calculation for Line Extension Drugs (CMS-2345-F2 and CMS-2345-IFC2). The final rule responds to comments on the definition and identification of line extension drugs for which CMS requested additional comments in the Covered Outpatient Drug Final Rule with Comment Period (COD final rule) published in February 2016.

Additionally, CMS is issuing an interim final rule with comment period (IFC) that revises the portion of the MDR program’s regulatory text that describes the line extension rebate calculation (§447.509(a)(4)) to accurately reflect the statutory language in section 1927(c)(2)(C)(i)-(iii) of the Act, which was revised by section 53104 of the BBA of 2018. There is a 60 day comment period which ends May 31, 2019.