Medication Rebates

Rebates • Spin – Rebates are a villain in producing higher drug costs • What are they? -- o Discounts for favorable formulary placement o Rebates are like discounts based on the volume of sales • Entities involved – PBM, rebate aggregator, Health Plan, drug manufacturer • What is rebated? -- brand name drugs only • Contract between PBM or payer and drug manufacturer o Terms of contracts are secret o Manufacturers don’t want other manufacturers to know what they have guaranteed for discounts o PBMs don’t want clients to know how much they keep o PBMs negotiate discounts so the overall cost is lower, but they keep a percentage of the savings • Largest contractor for rebates is Medicare • Response o CVS is giving patients a lower cost by giving rebates/discounts at point-of-sale o Walgreens and others are doing the same • Industry question – Are rebates going away, or are they just being moved to another cost that ultimately the patient or insurer still pays ______ Make sure to subscribe to get the latest episode. Contact Us: Pharmacy Benefit News: http://www.propharmaconsultants.com/pbn.html Email: [email protected] Website: http://www.propharmaconsultants.com/ Facebook: https://www.facebook.com/propharmainc Twitter: https://twitter.com/ProPharma/ Instagram: https://www.instagram.com/propharmainc/ LinkedIn: https://www.linkedin.com/company/pro-pharma-pharmaceutical-consultants-inc/ Podcast: https://anchor.fm/pro-pharma-talks YouTube: https://www.youtube.com/user/ProPharmaEducation