By Gina Shaw
Rebates paid by drug manufacturers to insurers and pharmacy benefit managers (PBMs) in exchange for preferred formulary status would be declared illegal kickbacks under a new rule proposed by the Trump administration on Jan. 31.
The rule proposes rolling back safe harbor protections for the rebates, which had kept them from violating federal anti-kickback statutes. It applies to rebates offered directly to Medicare Part D plan sponsors and Medicaid Managed Care Organizations