Budget deal targets high drug prices

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A tiny provision in the budget deal takes on soaring generic drug prices, which would hit companies that have been heavily criticized for raising prices.

The proposed budget deal announced Tuesday by Congress and the White House would include a provision that requires generic drug makers to rebate Medicaid if the cost of their drugs outpaces inflation. The deal would raise the debt limit until March 2017 and provides $90 billion in new spending through 2017.

To help offset the cost of the deal, it included the drug rebate provision, which would generate $12.2 billion over the next 10 years, according to the nonpartisan Congressional Budget Office.

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