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U.S. government proposes rule overhauling drug industry rebate system

February 01, 2019 / Caroline Humer

The U.S. government on Thursday proposed a rule to end the industry-wide system of after-market discounts called rebates that pharmacy benefit managers (PBMs) receive from drugmakers, a practice that has been under increased scrutiny. If finalized, the rule would change a system that has been in place for decades and that has been criticized for obfuscating the real price of prescription medicines. The administration of U.S. President Donald Trump has been promising to lower the cost of prescription drugs for consumers, who have seen their out-of-pocket expenses rise each year with higher list prices of pharmaceuticals.