PBM lobby sues to block HHS rule denying PBMs drugmaker rebates

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The Pharmaceutical Care Management Association, a national group that represents pharmacy benefit managers, filed a lawsuit Jan. 12 challenging a rebate rule passed by HHS last November

The rule eliminates rebates drugmakers pay to pharmacy benefit managers. It was intended by HHS to simplify the drug-pricing system and to pass discounts to consumers. Drugmakers have supported the rule, but most pharmacy benefit managers oppose it.

PCMA argues that the rule will drastically increase Medicare Part D premiums and costs for taxpayers. 

"[HHS] failed to consider the significant impacts on beneficiaries and government costs that were articulated in thousands of public comments opposing the rule when it was originally proposed. The rebate rule cannot be implemented and should be invalidated," PCMA's president and CEO, J.C. Scott, said in a news release

The group also said that rebates lower Medicare costs, the rebate rule would cost taxpayers $177 billion over 10 years, and that it doesn't address prescription drug list prices. 

Read PCMA's full statement here.

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