Posted by Michael Wonder on 18 Sep 2019
Medicare Part D rebates ‘substantially’ reduced drug spending, but not enough to offset price hikes
18 September 2019 - As controversy continues over prescription drug pricing, a new study finds that Medicare Part D spent $2 billion more for brand name medicines in 2015 than four years earlier, even though drug makers offered rebates to win favorable coverage from health plans.
Specifically, reimbursement to pharmacies for more than 1,500 brand-name medicines rose 19% from 2011 to 2015, while manufacturer rebates offered Medicare Part D plan sponsors increased 4% during that time, according to the Office of Inspector General of the Department of Health and Human Services, which ran the analysis in response to a request from Congress.
