✦ The Trump administration has withdrawn its controversial proposal to remove the safe harbor for drug manufacturer rebates to Medicare Part D plans and PBMs, a White House spokesperson confirmed to various media outlets on July 11. As first reported by Axios, the proposal was killed after facing resistance from White House domestic policy chief Joe Grogan “and other fiscal hawks on grounds that it was too expensive — costing the government nearly $180 billion over a decade,” Politico reported. “Based on careful analysis and thorough consideration, the president has decided to withdraw the rebate rule,” spokesperson Judd Deere said in a statement to Politico and others. HHS issued its own statement, citing ongoing efforts to lower prescription drug prices. Leerink analyst Ana Gupte told investors her firm expects Cigna Corp., CVS Health Corp. and UnitedHealth Group stocks to rally on the news. “We see this as positive for PBMs directly on margin sustainability in Medicare, and in the future on any potential spillover of the elimination of the safe harbor provision of rebates into the Commercial book,” she said. Read the Axios article at https://bit.ly/2XGO9gY and Politico article at https://politi.co/2XGl8NN.
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