The Trump administration on Wednesday abandoned one of its signature drug-pricing efforts: a ban on many of the rebates that drug companies pay to pharmacy benefit managers under Medicare.
A White House spokesman confirmed the news to STAT after it was first reported by Axios.
“Based on careful analysis and thorough consideration, the President has decided to withdraw the rebate rule,” spokesman Judd Deere said.
While the White House had argued eliminating rebates would result in drug manufacturers charging lower list prices, the proposal has been controversial since its unveiling in January. Drug manufacturers had largely supported it, while middlemen known as pharmacy benefit managers and insurers were vocally opposed….