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How Ending Medicare Drug Rebates Impacts You

Check out these resources to get a clearer picture of how the Trump Administration's proposed regulations ending drug rebates for Medicare Part D plans and Medicaid managed care plans (assuming they are finalized) impact you. 

HHS Fact Sheet on the Proposed Reguations: Check out the section on "What This Means for Private Plans" for the nuances of OIG rules and possible impications for you.

Modern Healthcare "Azar Suggests Commercial Plans Will Ditch Rebates Too" Secretary Azar calls out several reasons private payers are likely to follow Medicare's lead.

For more background information:

Better understand who is likely to benefit (and who is not) from rebates going away on Kaiser Health News

Focus on the purchaser perspective of the Trump Administration's evolving drug policy. Note the potential negative consequences for you if similar changes are not made in the private sector. Michael Thompson, CEO of the National Alliance of Healthcare Purchaser Coalitions, summarizes why ending rebates would benefit employer purchasers here and here.

Refresh your memory on how rebates work and The Impact of Prescription Drug Rebates on Health Plans and Consumers. There is a lot of detail here but for the bottom line focus on the Executive Summary and Background and those sections that specifically address private insurance. Interesting to note that $23Billion was paid out in rebates to private health plans in 2016, which is 12% of point-of-purchase spending. Generally rebates reduce the net cost of the health benefit and are reflected in lower premiums.

Posted by Cristie Travis at 3:16 PM

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