Medicaid: Changes in Drug Prices Paid by VA and DOD Since Enactment of Rebate Provisions

Pursuant to a legislative requirement, GAO provided information on the effects of the Omnibus Budget Reconciliation Act of 1990 (OBRA), which requires drug manufacturers to give rebates to state Medicaid programs based on the discounts offered to large purchasers, focusing on: (1) how the Department of Veterans Affairs (VA) and the Department of Defense (DOD) prescription drug prices had changed; and (2) what effect OBRA had on agency costs.