Trump administration scraps plan to ban drug rebates

The Trump administration abandoned a controversial proposal that would have overhauled the rebate system, according to The Hill

The proposed rule sought to ban rebates — the discounts drugmakers pay to pharmacy benefit managers  — in Medicare and Medicaid, unless they are passed directly to the consumer at the pharmacy counter. The move could have upended the way the U.S. pays for drugs. 

The proposed rule was one that the pharmaceutical industry supported, but the PBM and insurance industry fiercely opposed. 

"Based on careful analysis and thorough consideration, the president has decided to withdraw the rebate rule," White House spokesperson Judd Deere told The Hill. 

HHS initially sought to ban these discounts on prescription drugs, arguing that the rebates PBMs and insurers negotiate with drugmakers are "back door deals" that have led to artificially high list prices. 

Read the full report here.  

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