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Drug rebates will remain… but so will pressure to reduce drug prices and demonstrate value

by George van Antwerp, managing director, and Joseph M. Coppola, managing director, Life Sciences Commercial and Market Access, Deloitte Consulting LLP

On July 10, the White House abandoned efforts to eliminate safe-harbor protections for drug rebates in Medicare Part D and Medicaid managed care due to concerns that the change would lead to higher premiums for beneficiaries. (For background on this issue, see our previous blogs.) While the rebate issue is now off the table,

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With drug rebates on the chopping block, stakeholders should prepare for change

by George Van Antwerp, Managing Director, Deloitte Consulting LLP

Early this year, the US Department of Health and Human Services (HHS) proposed eliminating safe-harbor protections for the rebates drug manufacturers pay to pharmacy benefit managers (PBMs), Medicare Part D plans, and Medicaid managed care organizations. At the same time, HHS proposed two new safe-harbor protections for some point-of-sale (POS) price reductions on prescription drugs and certain PBM service fees.

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In the absence of drug rebates, new alternatives are likely to emerge

by Joseph M. Coppola, Managing Director, Life Sciences Commercial and Market Access Practice Leader, Deloitte Consulting LLP

The administration’s efforts to reduce prescription drug spending have put drug rebates in the spotlight. If rebates lose their safe-harbor status—as my colleague George Van Antwerp outlined in his recent blog—other models are likely to emerge to replace them. At least initially, any change to the rebate model is likely to be limited to Medicare Part D,

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The future of drug rebates: Are they to be or not to be?

by George Van Antwerp, Managing Director, Deloitte Consulting LLP

Nearly half of all Americans (49 percent) have at least one prescription drug, and 12 percent of the population has five or more, according to 2017 data from the Centers for Drug Control and Prevention (CDC). In 2016, $329 billion was spent on prescription drugs—an increase of nearly 30 percent from 2010.1

With so much money at stake,

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