Instead of eliminating drug rebates, use average sales price to set co-insurance levels

September 9, 2020

Changing key elements of the US health care system can be effective, but it can also be ill-advised. In January 2019, President Trump proposed a sweeping change: eliminating the rebates that pharmacy benefit managers negotiate with manufacturers for federally sponsored prescription drug plans. After much public review, analysis, and debate, the Trump administration abandoned the proposal in August 2019. Nearly a year later, the Trump administration in July restated its intention to do away with rebates for Medicare Part D drugs as one of several new executive orders aimed at lowering prescription drug costs.

In STAT, the authors discuss the Trump administration’s executive order to eliminate Medicare Part D drug rebates and offer an alternative proposal that doesn’t fundamentally alter the existing model: set patient co-insurance levels based on the average sales price.

To read the article published in STAT, click here.