Drugmakers would no longer be allowed to give rebates to pharmacy benefit managers under a new proposal announced by Health and Human Services Secretary Alex Azar this week, the Washington Post reports.
Those rebates, according to the report, would be offered directly to consumers.
“It’s a cockamamie system that’s never made any sense,” former Federal Trade Commission policy chief David Balto tells the Post. “When it comes to the PBM claims of saving money through their rebate schemes, everyone’s going to realize the emperor wears no clothes.”
American’s Health Insurance Plans President Matt Eyles says weakening PBMs fails to address what he says is the key issue: drug pricing.
“Manufacturers have complete control over how drug prices are set,” he said. “Already this year, more than three dozen drug makers have raised their prices on hundreds of medications.”
To read the full report on the Post, click here.