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PCMA Complaint Addresses Harms Of “Rebate Rule” To American Seniors

posted by AHIP

on January 12, 2021

Washington, D.C. – (January 12, 2021) – Matt Eyles, president and CEO of America’s Health Insurance Plans (AHIP) issued this statement following the filing of a legal complaint by the Pharmaceutical Care Management Association (PCMA) on the Administration’s “rebate rule,” which eliminates rebates that lower health care costs for Americans:

Drug prices are out of control because Big Pharma alone sets and controls drug prices. For years, health insurance providers and our PBM partners have negotiated discounts and rebates to reduce drug prices, saving Americans billions of dollars in health care costs.

The Trump Administration’s own actuaries have found that 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. This rule not only violates the Administration’s own Executive Order, it threatens health care affordability even as America’s seniors remain among those most vulnerable to COVID-19.

Health insurance providers are formulating their Part D bids now for 2022. This rule, left unchecked, will raise premiums for seniors who rely on Part D drug coverage.  We support invalidation of this rule and urge policymakers, instead, to support much-needed and deserved relief to America’s seniors.


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 www.ahip.org for more information.

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