PBMs the winners as White House scraps rebate proposal

12 July 2019

Shares in major pharmaceutical companies fell on Thursday, after the US government said it would abandon a proposal to require health insurers to pass significant rebates on to Medicare patients.

Drugmakers are estimated to pay out in excess of $100 billion per year in rebates, with Pharmacy Benefit Managers (PBM) the primary beneficiaries.

Companies which negotiate discounts with drugmakers will be allowed to continue benefiting from those rebates.

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