Trump’s HHS Backs Rejection of Drug Discount Plan Rebate Model

The Trump administration is defending a Biden-era decision to reject drug manufacturer plans that would allow them to discount medicines through a rebate rather than up front under a federal drug discount program.

The US Department of Health and Human Services said Monday that its decision wasn’t arbitrary and capricious “at this time” when it rejected rebate model proposals from Eli Lilly & Co., Bristol Myers Squibb Co., and Novartis AG, according to the agency’s cross motion for summary judgment filed in the US District Court for the District of Columbia.

At issue before the court is ...