New MGA Analysis Highlights Problems with Proposal to Restrict Drug Manufacturer Rebates

This MGA analysis details concerns with a proposed rule from the Health and Human Services Office of Inspector General that would restrict drug manufacturer rebates to pharmacy benefit managers in Medicare Part D and Medicaid Managed Care Organizations. Not only does the propose rule lack evidence, but it is poorly targeted to achieve its stated goals. In fact, it will increase Medicare beneficiary premiums, federal spending, and drug manufacturer profits. The analysis concludes that it would be premature for policymakers to proceed without better understanding the proposed rule’s impact.

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