Friday, February 22, 2019

PBMs Raise Concerns on Part D Rebate Rule

Nearly two weeks after the Trump administration issued a proposed rule that would effectively overhaul the prescription drug rebate system, the dust has still not settled in the PBM sector as firms brace for a seismic shift in how they do business.
The proposed rule would remove safe-harbor protections under the federal anti-kickback statute for rebates paid by drug manufacturers to PBMs, Part D plans and Medicaid managed care organizations. It would also create two new safe harbors: one for prescription drug discounts offered directly to patients, and one for fixed-fee service arrangements between drug manufacturers and PBMs.
If the rule is enacted, "the entire Part D and Managed Medicaid pharmacy management industry would have to change," Mike Kolar, senior vice president and general counsel of Prime Therapeutics, LLC, tells AIS Health. "Prime, and other PBMs, will need to develop new tools and methods to continue to negotiate price on behalf of millions of members," he adds.
Kolar adds that Prime is "concerned about the adverse economic impacts of the proposal," as it could raise Medicare Part D premiums and government program costs.
Dea Belazi, president and CEO of specialty-pharmacy-focused PBM AscellaHealth, says the new proposal, if enacted, "is going to be a revenue hit" for his company, "because it is dollars that come in that will no longer come in if this goes through." But it's certainly not going to put the PBM out of business, he adds.
From RADAR on Drug Benefits

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