Trump Administration’s Rebate Rule Will Raise Drug Costs For Seniors And Taxpayers

posted by AHIP

on July 24, 2020

WASHINGTON, D.C. – Matt Eyles, president and CEO of America’s Health Insurance Plans (AHIP), issued this statement following the Administration’s release of an Executive Order that would direct the Department of Health and Human Services (HHS) Secretary to finalize the drug pricing “rebate rule”:

“Americans are being hurt by high prescription drug prices, which are set and fully controlled by Big Pharma alone. And Big Pharma could cut drug prices all on their own tomorrow if they wanted to do so – but they won’t. Action must be taken to hold Big Pharma accountable for their out-of-control drug prices. But the Administration’s rebate rule takes us in the complete opposite and wrong direction, and the Administration’s own analysis confirms this assessment.

“The Executive Order requires the Secretary of HHS to publicly confirm that the rebate rule will not increase federal spending, premiums for seniors, or out-of-pocket costs. We already know the rebate rule will increase those costs: The Administration’s own actuaries previously 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.

“The problem is the price. With the greatest urgency, the Administration should focus on bipartisan, workable solutions to protect patients, taxpayers, and all Americans from higher drug costs in their greatest time of need, especially in the middle of the COVID-19 crisis.”

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.