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What Will Happen When Rebates Go Away? Look At Authorized Generics

 
• By Cathy Kelly

Recent launches by Lilly, Amgen and Gilead suggest list prices may decrease with the HHS proposal to disrupt the rebate system, but not as low as current net prices after rebates, according to pharmacy benefit experts.

lower-drug-prices

The pricing decisions behind recently-launched authorized generics offer an indicator of how manufacturers would respond to implementation of the HHS proposed rule to eliminate rebates in Medicare Part D and Medicaid managed care plans, according to pharmacy benefit experts speaking at a National Business Group on Health conference April 11.

Prices might be lower, though that’s not a given. Executives from major manufacturers have told members of Congress they would lower pricing as long as rebates go away in the...

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