Inspector General Finds Negotiated Rebates Slowed Medicare Part D Price Hikes, Saved Program $8 Billion on Drug Costs
For Immediate Release
Contact: Jon Conradi
Washington, D.C. – The Campaign for Sustainable Rx Pricing (CSRxP) issued a statement today following the release of a new report from the U.S. Department of Health & Human Services (HHS) Office of Inspector General on rebates in the Medicare Part D program. The report found rebates negotiated by pharmacy benefit managers (PBMs) slowed price increases on 1,510 brand-name prescription drugs by 15 percent from 2011 to 2015 — undercutting a common refrain from Big Pharma blaming rebates for pushing drug prices higher.
“This report provides the latest, incontrovertible evidence that the culprit for the crisis of rising prescription drug prices are the brand name manufacturers who alone set and control the list price,” said CSRxP executive director Lauren Aronson.
“Big Pharma can no longer hide behind its scapegoating of PBMs and must be held accountable for its egregious pricing practices,” Aronson continued. “This report should help policymakers see clearly through Big Pharma’s blame game and press forward with bipartisan, market-based solutions to crack down on the anti-competitive tactics and price-gouging of brand name drug makers.”
The report from the HHS Inspector General analyzed 1,510 brand name drugs with rebates in the Part D program from 2011 to 2015. The report found:
To read the full HHS OIG report, click here.