The Trump administration’s proposal to shift rebates paid by pharmaceutical companies from pharmacy benefit managers to consumers could be a significant boon for patients, Health and Human Services Secretary Alex Azar tells the New York Times, but there exists some risk for unintended consequences.
“This is an incredibly important proposal that could fundamentally change how drugs are priced and paid for at pharmacies,” Azar said. “We are taking action to encourage the industry to shift away from the opaque rebate system and provide true discounts to patients at the point of sale.”
Critics, however, contend that the proposal has the potential to increase premiums, according to the report, as providers would have to make up for losses caused by the lack of rebate payments.
Democratic Reps. Frank Pallone and Richard Neal in a joint statement said a “majority of Medicare beneficiaries will see their premiums and total out-of-pocket costs increase if this proposal is finalized.”
To read the full report on the New York Times, click here.