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Drug Intermediaries Threaten Lawsuits to Preserve Cut of Prices (2)

Nov. 16, 2020, 2:08 PMUpdated: Nov. 16, 2020, 6:30 PM

Pharmacy intermediaries who negotiate drug insurance coverage are already threatening lawsuits if the Trump administration follows through on a revived plan to kill off drug rebates.

The Office of Management and Budget is reviewing a final rule as of Monday that would end legal shields for drug rebates drugmakers pay to pharmacy middlemen and insurance plans providing coverage through Medicaid or Medicare’s drug program, according to its website. It would replace drug rebates with fixed-fee service arrangements. If enacted, it would be a massive shift in how the drug supply chain works in the U.S.

The proposal was once ...