Medicare Drug Rebate Change Could Ricochet in Private Insurance

Changes to how drugs can be priced for government-run insurance will likely be aped in private-sector health plans run by companies like Aetna Inc. and Cigna Corp., Health and Human Services Secretary Alex Azar said Feb. 1.

He was speaking about a Trump administration proposal designed to get rid of the rebates drugmakers pay to insurers and drug middlemen. The idea is that any savings from proposal will pass directly to patients at the pharmacy counter.

Although the proposal only gets rid of rebates for drugs sold under Medicare and Medicaid, Azar said it will help bring down costs for ...