BioCentury
ARTICLE | Politics, Policy & Law

Killing Part D rebates

How scrapping Part D PBM rebates will help Trump, patients and pharma

February 9, 2019 2:06 AM UTC

HHS’s proposal to scrap the secret rebates drug manufacturers pay PBMs and health plans in Medicare Part D would help President Donald Trump fulfill promises to reduce drug prices. It would also reduce financial burdens on senior citizens who incur the highest costs at pharmacy counters, and remove perverse incentives for Part D plans to steer patients to the most expensive drugs.

Although HHS Secretary Alex Azar is presenting the proposal as an attack on the drug industry, unlike many drug price proposals announced by the Trump administration and under consideration in Congress, biopharma companies are delighted by the rebate proposal (see Sidebar: “Popping Corks”). ...