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Retroactive TRICARE Retail Rebates Could Cause Trouble, PhRMA And BIO Say

Executive Summary

BIO and PhRMA are urging the Department of Defense to back down from its proposal to make rebates for drugs filled through the TRICARE retail pharmacy program retroactive to January

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Manufacturers of drugs dispensed through the TRICARE retail pharmacy program were subject to the ceiling price as of Jan. 28, 2008, and are therefore subject to a refund for the difference in price paid, the Department of Defense says in a March 17 final rule implementing provisions of the National Defense Authorization Act for 2008. Manufacturers may seek a waiver or compromise in the refund amount, but refund payments for utilization data from Jan. 28 through Dec. 31, 2008 are due May 26. Manufacturer groups submitted comments arguing against making the refund retroactive (1"The Pink Sheet," Sept. 29, 2008, p. 13)

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