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Pharma's Big Defeat: US Rebate Proposal Hits The End Of The Road

 
• By Jessica Merrill

White House will not move forward with a rebate proposal the drug industry supported as a way to lower patient drug spending.

A Dead End sign posted along a rural gravel road. - Image
HHS' proposed rebate rule has hit a dead end.

The White House will not move forward with a proposed rule to eliminate manufacturer rebates, delivering a defeat to the industry, which had lobbied heavily in favor of the policy change. It is the second big proposal from the Department of Health and Human Services blueprint on drug pricing to go up in smoke this month after a federal judge struck down the Trump Administration's rule requiring the disclosure of drug prices in TV ads.

Unlike with the direct-to-consumer (DTC) ad policy, industry advocated in favor of eliminating rebates, the payments it makes to payers off the list price of drugs to negotiate placement on drug formularies

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