Administration withdraws proposal to change drug discount safe harbors

The Trump administration today withdrew a proposed rule that would eliminate the rebate safe harbor for pharmacy benefit managers under the federal anti-kickback statute, and create new safe harbors to protect price reductions at the point-of-sale and certain fees paid by drug makers for PBM services. In comments submitted in April to the Department of Health and Human Services’ Office of Inspector General, AHA said the rule would likely increase premiums for Medicare beneficiaries without addressing the nation’s high and rising drug prices, and urged the agency instead to consider alternative, market-based solutions aimed directly at lowering drug prices. The Campaign for Sustainable Rx Pricing, of which AHA is a founding member, said the rule’s withdrawal will allow the administration and Congress to put greater focus on such solutions.