Elimination of Current Manufacturer Rebates in Part D Will Harm Medicare Beneficiaries

In July of 2020, the Trump administration issued an Executive Order reviving its Proposed “Rebate Rule” first issued in early 2019 that would eliminate the regulatory safe harbor protections for rebates negotiated between drug manufacturers and pharmacy benefit managers (PBMs).

This fact sheet explains the harm that such a rebate ban could impose on Medicare beneficiaries and the costs that would be incurred by taxpayers.