Drug rebates in Medicare Part D

Prescription drug prices in the United States have been rising sharply in recent decades. For many drugs, “net” prices have risen much more slowly than list prices due to the greater use and size of rebates, which facilitate negotiation of prices between pharmacy benefits managers and manufacturers. But since deductibles and coinsurance amounts that patients must pay are typically based on list prices, patients who use expensive drugs with large rebates may have to pay substantially more even if net prices are stable. This problem is particularly important for those with Medicare Part D coverage.

On July 27, the USC-Brookings Schaeffer Initiative for Health Policy hosted a webinar to discuss how the increasing reliance on rebates burdens many Medicare patients and the best policy solutions. Erin Trish opened the event by presenting research findings on the increasing magnitude of rebates in Part D and the implications for beneficiaries and federal spending. Then Paul B. Ginsburg moderated a panel discussion that will examine alternative solutions to this issue.

Viewers submitted question for panelists by emailing events@brookings.edu or via Twitter with #DrugRebates.