HHS Secretary Calls for Drug Rebate Reform

Azar Challenges Congress to Expand Drug Rebate Reform to Commercial Market
– FierceHealthcare

Manatt’s Ian Spatz, a senior advisor with Manatt Health, spoke to FierceHealthcare about the government potentially ending safe-harbor protections for drug rebates in commercial insurance.

Department of Health and Human Services (HHS) Secretary Alex Azar has called on Congress to keep their word and enact significant reform in the pharmacy supply chain. A new proposal from HHS regarding Medicare Part D would give legislators the opportunity to put their plans into action, he said.

Spatz said it’s likely that pharmaceutical companies and pharmacy benefit managers will fall in line with new Medicare regulations and pricing, to avoid splintering into two different pricing factions and creating confusion.

“It’s hard to understand how health plan insurers and manufacturers would want to operate two different systems,” Spatz said.

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