Trump Administration Withdraws Proposal For Rebates On Drug Plans

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President Trump is withdrawing his administration’s proposal to eliminate rebates from government drug plans. The White House said today the president “will consider using any and all tools to ensure that prescription drug costs will continue to decline.” The White House believes the rebates led to a “perverse incentive” for drugmakers to set list prices on drugs artificially high. The new rebate rule would have given pharmacy benefit managers a flat fee for including drugs on their plan and would allow discounts to be passed on to patients at the pharmacy counter.