Drug prices are at the center of health policy debates at both the state and federal levels. . Policymakers are currently debating significant changes to payment for prescription drugs through Medicare and commercial insurers that may also have implications for Medicaid and the Medicaid Prescription Drug Rebate Program (MDRP). This brief explains the MDRP to help policymakers and others understand how Medicaid pays for drugs and any potential consequences of policy changes for the program.