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Comment & Response
March 2016

Inaccurate Reporting of Insulin Reimbursement

Author Affiliations
  • 1US Real World Health Outcomes Research, Eli Lilly and Company, Indianapolis, Indiana
  • 2Payer and Institutional Marketing-Diabetes, Eli Lilly and Company, Indianapolis, Indiana
JAMA Intern Med. 2016;176(3):407-408. doi:10.1001/jamainternmed.2015.8095

To the Editor In an article published in a recent issue of JAMA Internal Medicine, Luo et al1 reported on trends in Medicaid reimbursement for insulin from 1991 to 2014. The authors were correct to assert that Medicaid’s cost for insulin can be estimated by subtracting rebates paid by insulin manufacturers from the reported pharmacy reimbursement. However, Luo et al incorrectly assumed rebates as fixed at 23.1% of the average manufacturer price (AMP). This flawed assumption substantially distorts their results and conclusions.

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