PBM lobby sues to block HHS rule denying PBMs drugmaker rebates

A new lawsuit from the Pharmaceutical Care Management Association (PCMA) seeks to block a rebate rule passed by HHS in November 2020. The rule, which ends rebates drug companies pay to PBMs, was intended by HHS to simplify the drug-pricing system and to pass discounts on to consumers. However, PCMA asserts the rule will substantially increase Medicare Part D premiums and costs for taxpayers. “[HHS] failed to consider the significant impacts on beneficiaries and government costs that were articulated in thousands of public comments opposing the rule when it was originally proposed. The rebate rule cannot be implemented and should be invalidated,” said PCMA president and CEO J.C. Scott. PCMA also argued that rebates reduce Medicare expenses, the rebate rule would cost taxpayers $177 billion over a decade, and that the rule does not address prescription drug list prices.