Don't Discount Drug Discounting

Law360 (April 9, 2019, 1:38 PM EDT) -- The Trump administration, as part of the U.S. Department of Health and Human Services' "Blueprint to Lower Drug Prices and Out-of-Pocket Costs," has put forth several proposals to reduce the prices patients pay for prescription medications. One sensible proposal aims to directly lower prices for consumers by encouraging discounts be passed on to patients at the point of sale. If adopted, this rule promises to streamline cost savings for American patients and shake up certain entrenched interests, whose ire it has already drawn.

Under the status quo, drug manufacturers start from a set of list prices, but provide retrospective rebates to...

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