Paying for Protection: Medicare Rebates May Make Protected Classes Less Safe for Sponsors

Democrats failed in their first attempt to impose price controls in Medicare Part D. But, led by California Rep. Waxman, they may have found a new approach that seems less threatening than price negotiations-rebates for products used by dual eligible patients. And the drugs most likely to be affected are in Part D's six protected classes.

Be careful what you wish for. The drug industry may want to keep that proverb in mind heading into 2009.

For any drug company playing in the Medicare Part D program, two critical developments took place in July:

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