Trump Administration Targets Prescription Drug Rebates in Proposal

Following recent drug pricing hearings on Capitol Hill, the Trump Administration proposed a rule targeting the prescription drug rebate system.

Lawmakers in Congress previously questioned the pricing practices of manufacturers and debated potential solutions to the high prices of some prescription medications, such as insulin. The latest proposed rule, which was announced by Health and Human Services (HHS) Secretary Alex Azar and Inspector General Daniel Levinson, targets backdoor rebates by encouraging manufacturers to pass discounts directly to patients.

According to a fact sheet released by HHS, the proposal would “expressly exclude safe harbor protection under the Anti-Kickback Statute rebates on prescription drugs paid by manufacturers to pharmacy benefit managers (PBMs), Part D plans, and Medicaid managed care organizations.”

Under the rule, prescription rebates may be passed directly to patients at the pharmacy counter, effectively creating a new safe harbor designed for price reductions at the point of sale. The proposed rule would pave the way for fixed fee service arrangements between drug manufacturers and PBMs, while bringing new transparency to the system.

Continue reading on Specialty Pharmacy Times.