OIG: Rebates reduced spending growth for Part D brand-name drugs

Rebates reduced the growth in Medicare Part D spending for brand-name drugs between 2011 and 2015, but spending for brand-name drugs with rebates still grew by $2 billion over the five-year period, according to a report released last week by the Department of Health and Human Services’ Office of Inspector General. Without rebates, total Part D reimbursement for brand-name drugs would have risen 19% over the period, OIG found. In response to a congressional request, OIG examined 1,510 brand-name drugs with Part D reimbursement and rebates each year over the period.
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