Trump plan targets PBM rebates

Feb. 3, 2019

The Trump administration has proposed a plan that would ban rebates paid by drugmakers to pharmacy benefit managers, in an effort to target high list prices of drugs.

The measure, released by the Department of Health and Human Services last week, would roll back so-called safe-harbor protections for rebates offered to PBMS.

In a statement announcing the proposal, HHS Secretary Alex Azar said PBM rebates are a “hidden system of kickbacks to middlemen” that increase drug costs for Americans.

Under the administration's proposal, rebates would instead be passed along directly to customers.

The plan isn’t final and will be subject to a 60-day period for public comment.

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