Shares of PBMs drop on threat to drug rebates

A proposed policy threatening to overhaul safe harbor protections for pharmaceutical company rebates, which largely benefits pharmacy benefit managers, sent shares of the PBMs sliding July 19, according to MarketWatch.

HHS sent the White House Office of Management and Budget the proposal, titled "Removal of Safe Harbor Protection for Rebates to Plans or PBMs Involving Prescription Pharmaceuticals and Creation of New Safe Harbor Protection," July 18. While the rule's language is hidden from the pubic until the office completes a review, just the publicly available title sent shares sliding. The safe harbor policy is a legal protection that shields drugmaker rebates made to PBMs from anti-kickback statutes.

Although the proposed policy's language isn't available, several PBMs felt its effect: Express Scripts Holding shares slid 1.1 percent, CVS Health shares dropped 1.7 percent and UnitedHealth Group shares dropped 1.2 percent.

Read the full report here.

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