Inspector general: Part D rebates grew, but not enough to offset drug price hikes

Although rebates for brand-name drugs in Medicare Part D substantially reduced drug spending, the rebates were not enough to offset major spikes in drug prices, according to a new study from Office of Inspector General cited by STAT.

For its study, the OIG analyzed 1,510 brand-name part D drugs that received rebates between 2011 and 2015.

The OIG found that Part D spent $2 billion more for brand-name medicines in 2015 than it did in 2011, despite the total dollar amount of rebates increasing by $8 billion during that same period.

Overall, the study found that rebates reduced the total growth in net spending, but did not prevent all price increases, according to Erin Bliss, assistant inspector general for evaluation and inspections. If it weren't for rebates, net prices would have risen much more, she concluded.

The report, requested by Congress, comes as rebates face intense scrutiny from the Trump administration.

Read the full report here

 More articles on pharmacy:
California biotech files for bankruptcy
Ohio's Medicaid director may give results of drug pricing report in front of oversight committee
Q2 brings smaller hikes to wholesale, net drug prices

Inspector general: Part D rebates grew but not enough to offset drug price hikes

Copyright © 2023 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars