AHIP Responds To Final Rule On Prescription Drug Pricing And Rebates

posted by AHIP

on November 20, 2020

WASHINGTON, D.C. – Matt Eyles, President and CEO of America’s Health Insurance Plans (AHIP), issued this statement following the Department of Health & Human Services’ release of a final rule attempting to impact drug prices through the elimination of drug rebates that lower health care costs for Americans:

“Drug prices are out of control because Big Pharma alone sets and controls drug prices, not because health insurance providers and our PBM partners negotiate discounts and rebates to reduce drug prices.  While pharma manufacturers would have you believe rebates are a problem and have pushed the Administration’s ‘rebate rule,’ time and time again, economists and analysts have found that the rule takes us in the wrong direction by increasing costs and premiums.

“Americans want more affordable health care and prescription drugs. But as the Administration’s own actuaries found, the rebate rule will increase Medicare premiums for all seniors by 25%, give drug makers another $100 billion bailout, and have taxpayers foot the bill for higher costs. It is inconceivable that the Administration would now do a complete about face and violate its own Executive Order by asserting that the rule would not increase federal spending, beneficiary premiums, or patients’ total out-of-pocket costs.  This rule threatens health care affordability just as Americans are continuing to battle the COVID-19 crisis and its impact on their health and financial stability.

“We support legislative and regulatory actions that would hold Big Pharma accountable for their out-of-control drug prices, but the rebate rule fails that test and is not that kind of solution. We will continue to review the details of the rebate rule and explore all options to reverse this misguided policy and stop its implementation. We urge leaders to focus on bipartisan, workable solutions to protect patients, taxpayers, and all Americans from higher drug prices and health care costs.”

About AHIP

AHIP is the national association whose members provide coverage for health care and related services to hundreds of millions of Americans every day. Through these offerings, we improve and protect the health and financial security of consumers, families, businesses, communities and the nation. We are committed to market-based solutions and public-private partnerships that improve affordability, value, access, and well-being for consumers. Visit for more information.