Health and Human Services Secretary Alex Azar during his testimony on Capital Hill Tuesday came out against the system of rebates used by pharma and pharmacy benefit managers to negotiate and establish prices, Bloomberg reports.
“We may need to move toward a system without rebates, where PBMs and drug companies just negotiate fixed-price contracts,” Azar said during the Senate Health, Education, Labor and Pensions Committee hearing. “Such a system’s incentives, detached from artificial list prices, would likely serve patients far better.”
Committee Chairman Sen. Lamar Alexander came out again rebates due to the increased difficulty that arises from them when trying to track drug spending.
“I understand the administration may need some additional authority to modify or end the practice of rebates,” Alexander said.
To read Bloomberg’s full report, click here.