Industry Says Mandatory Rebates in Part D Could Hurt Drug Companies, U.S. Economy

If biopharmaceutical companies have to pay government rebates under Medicare Part D for dual-eligible beneficiaries, “serious harm” will be done to the industry and the economy as a whole, said John Castellani, president and chief executive officer of the Pharmaceutical Research and Manufacturers Association (PhRMA).

Speaking at a July 11 press briefing, Castellani warned that these rebates, which are part of a proposal by the Obama administration in debt-ceiling talks with Congress, might produce short-term savings, but those savings would accrue “at the expense of the economy and seniors.”

Biopharmaceutical firms are one of the country’s “engines of economic development,” ...