Drug Rebate Safe Harbor Protections Removed but Loopholes Still Remain

The Department of Health and Human Services (DHS) has nixed the “Safe Harbor” protections for pharma rebates to PBMs, according to Dr. Eric Bricker. Dr. Bricker explains that rebates are essentially a form of kickbacks, and therefore aren’t immune from the “Safe Harbor” laws. Now, rebates must be given back to seniors. However, exceptions to the anti-kickback statute still exist.

According to Dr. Bricker, “Group purchasing organizations still have safe harbor from the anti-kickback statue. So, in other words, GPOs can still legally get commissions from government and charge government programs, even though they’re getting commissions.”

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(Source: Medical Executive Post, January 24^th, 2022)