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PBM use of rebates distorts rising cost of drugs in insured plans: Report


Prescription drug rebates from drugmakers to commercial health insurers are steadily increasing due to the involvement of pharmacy benefit managers, according to a study published in JAMA Health Forum, reports Axios. Drugmakers’ contracts with PBMs and health plans can ultimately "incentivize drug manufacturers to inflate list prices and PBMs to distort drug formularies to favor high list price and high-rebate therapies, the study’s authors write. The issue has been gaining attention on Capitol Hill, with a bipartisan group of lawmakers pushing to outlaw rebates.

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