BioCentury
ARTICLE | Politics, Policy & Law

Filling the rebate void

Why eliminating rebates might be a good but short term fix to lower drug prices

September 21, 2018 8:38 PM UTC

HHS’s proposal to eliminate drug rebates should have the intended consequence of increasing transparency into drug pricing in the short term. But the long view is that value-based pricing or alternative co-pay agreements will do more to align drug prices and benefit patients.

The HHS move would take away the key negotiating tool PBMs and insurers use to obtain discounts on pharmacy-administered drugs, and likely dissolve the distinction between the wholesale acquisition cost (WAC) -- or list price -- and the negotiated net price. ...