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Rebate Reform: Big Changes Are Looming For The US Drug Market

 
• By Jessica Merrill

Changing US drug rebating policy is like throwing an activated grenade into the middle of the American drug distribution system. Yet, increasingly it seems the US drug market is poised for a big shake up when it comes to the way pharmaceuticals manufacturers price their drugs, negotiate market access with payers, and pay back-end discounts to offset the cost of their products. 

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What lies ahead for US drug pricing and use of rebates? • Source: Shutterstock

The big talk in Washington, DC, currently is around rebate reform, as it is called, which could represent one of the biggest policy changes to impact US drug manufacturers since the implementation of Medicare Part D. Right now, there is a lot of uncertainty about which policies might ultimately be implemented, but a wide range of options appear to be under consideration.

Eliminating rebates altogether would represent an enormous change for the pharmaceutical sector, while passing rebates onto consumers at the point of sale or reforms to the system would be less...

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