Trump Administration's Rule Ending Drug Rebates in Medicare Nears Final Approval--4th Update
November 13 2020 - 3:43PM
Dow Jones News
By Stephanie Armour
The Trump administration's revived rule to end rebates that
drugmakers give to middlemen in Medicare is awaiting approval from
the Office of Management and Budget and a final rule could be
imminent, according to a person familiar with the matter.
The administration has said the rule would drive down the prices
consumers pay for prescription drugs. An earlier version of the
rule, a signature part of President Trump's plan to lower drug
prices, was withdrawn in 2019 because some White House advisers
raised concerns that it could increase Medicare premiums. Mr. Trump
in July signed an executive order that revived the rule and added a
requirement that it not raise premiums or increase federal
spending.
Ending the annual rebates would spare drug companies from paying
billions of dollars to middlemen in Medicare, the federal
health-insurance program for seniors and the disabled. Health plans
had fought against the proposal because they would then have to
cover higher drug costs. The rule was revised because of the
requirements on premiums imposed by the executive order, the person
said.
The Department of Health and Human Services' decision to submit
the rule to the OMB shows the administration plans to continue
making health-related rules and regulations before Jan. 20, when
President-elect Joe Biden is scheduled to be inaugurated.
(More to Come)
Write to Stephanie Armour at stephanie.armour@wsj.com
(END) Dow Jones Newswires
November 13, 2020 15:28 ET (20:28 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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