How Reviving HHS’ Rebate Rule Will Raise Medicare Premiums

Host JC Scott speaks with Mark Newsom, the principal and founder at Health Evaluations LLC, on one of the executive orders Trump signed on drug pricing that affects prescription drug rebates for public programs. Newsom discusses how prescription drug premiums will certainly increase with the implementation of this rule.

What a Post-Rebate System Would Look Like For PBMs: With the removal of rebates for such programs, many players in the system are skeptical about how the shift in power will disturb the establishment of drug prices. Newsom speculates the balance shifting towards consumers sticking to the pricier branded drugs rather than their generic counterparts.

The Executive Order Could Still Have Its Meaning Altered: JC and Mark discuss what mysteries await with how Secretary of Health and Human Services, Alex Azar, moves forward with Trump’s order. Newsom also brings up how big changes in sectors such as pharmaceuticals and healthcare would bring risks if not properly tested and ironed out beforehand.

Taking a Step Back to See What is and isn’t Working: Newsom gives his own take on how the system as whole can fix the issues being presented while also keeping every party happy. From creating sufficient competition without giving one stakeholder too much leverage to how out-of-pocket protection can be implemented, most problems can be solved when everyone is on the board to discuss.

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