Pharmaceutical Benefit Managers Sue Over Drug Rebate Rule

Pharmaceutical benefit managers sued the Trump administration Tuesday (Jan. 12) over a last-minute rule to end Medicare drug rebates that PBMs use to negotiate lower prices for insurers. The lawsuit by the Pharmaceutical Care Management Association both challenges the merits of the regulation and argues that the administration circumvented public rulemaking. The rebate rule, which is set to take effect next year, would replace the safe harbor for rebates with a safe harbor for up-front discounts that are given to...