18 March 2019 -“Take away our rebates? We’ll just up premiums.” 

This is the threat from pharmacy benefit managers (PBMs) and insurers if rebates are passed back to seniors in Medicare.

PBMs determine the formularies for Medicare beneficiaries, thus controlling what drugs they can get, where they can get them and how much they will pay for them. Ideally, placement on the preferred formulary should be based on efficacy, safety and lowest list price. However, preferred status is determined by highest price concessions from manufacturers in the form of rebates and administration fees.

Read The Hill article