Trump administration withdraws proposed rebate rule

by NCPA | Jul 11, 2019

On Thursday, the Trump administration decided to scrap its proposal to end the safe harbor protections for rebates paid by manufacturers to PBMs. It had been touted one of President Trump's most ambitious proposals to lower drug prices and increase transparency but – particularly after the administration had already abandoned its separate proposal to fix pharmacy DIR fees – NCPA had reservations about how this rebate proposal would have been implemented. In fact, in our comments on the proposed rebate rule, we emphasized the need for pharmacy DIR fee reform to prevent PBMs from utilizing other forms of remuneration to make up for loss of revenue on the rebates. We also shared our concern that the proposed rule didn't sufficiently consider the impact it would have on small business community pharmacies.

Though this proposed rule appears to be off the table, we are continuing to work with members of the Senate Finance Committee to encourage them to include pharmacy DIR fee reform in their drug pricing legislation. Please join us and ask your senators to help fix pharmacy DIR fees.