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Rebate Pass-Through Would Lower, Not Raise, Medicare Spending – PhRMA

 
• By Cathy Kelly

Biopharma manufacturers dispute predictions that passing through rebates at the point-of-sale in Medicare Part D would increase government spending. Pharmacy benefit managers argue the policy would violate the Part D statute and the Trade Secrets Act.

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Medicare could save up to $73bn over 10 years by implementing a new policy dictating that a portion of the prescription drug rebates negotiated on behalf of Part D plans is passed along to reduce beneficiary cost sharing at the point-of-sale, the Pharmaceutical Research and Manufacturers of America argues in Jan. 16 comments to the Centers for Medicare and Medicaid Services.

The comments strongly support passing through a portion of negotiated rebates in Part D, an idea that the industry has been promoting for several months as a remedy for high...

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