Klibanoff, Peter; Kundu, Tapas - 2009
Reconciliation Act of 1990 included a rebate program that featured a most favored customer (MFC) clause. This clause guarantees that … Medicaid gets a fixed rebate on each unit of purchase by Medicaid consumers. The rebate is calculated as the difference between … discriminating monopolist in response to the imposition of MPP or APP rules. Under MPP, the minimum price gross of rebate always …