Washington, D.C. – Matt Eyles, president and CEO of America’s Health Insurance Plans (AHIP), issued this statement following a January 30, 2021 legal order in which the Biden Administration agreed to delay the implementation of the “rebate rule” in response to litigation brought by the Pharmaceutical Care Management Association (PCMA). The rebate rule is a proposal which would hand Big Pharma a massive bailout while increasing prescription drug prices for millions of Americans during a pandemic:
Every American deserves access to affordable, comprehensive health coverage and high-quality care, including access to affordable prescription drugs. For too long, millions of Americans have faced out-of-control drug prices—prices which are set and controlled solely by drug makers.
That’s why we strongly support the stipulation between the Biden Administration and the Pharmaceutical Care Management Association (PCMA) delaying the effective date of the ‘rebate rule’ until January 2023. The rebate rule is a misguided proposal from the prior Administration which would hurt some of our most vulnerable populations—seniors and people with disabilities—through increased premiums. It would cost America’s taxpayers billions of dollars while transferring billions into drug makers’ coffers. Most important, the rebate rule does nothing to lower prescription drug prices.
Instead of further lining the pockets of Big Pharma, health insurance providers support real solutions to address outrageous drug prices: increasing competition, expanding access to generic drugs, and ending patent abuse. Those are the solutions that Americans need and deserve.
We are encouraged by this important first step in ensuring this bad policy does not go into effect. The delay will provide a much-needed pause to allow the Administration ample opportunity to better understand the rebate rule’s harmful impact on millions of Americans. While we continue to urge full withdrawal of the prior Administration’s rule, this delay will allow Medicare Part D plans in 2022 to provide the benefits and premiums seniors have come to expect.
About AHIP
AHIP is the national association whose members provide coverage for health care and related services to hundreds of millions of Americans every day. Through these offerings, we improve and protect the health and financial security of consumers, families, businesses, communities and the nation. We are committed to market-based solutions and public-private partnerships that improve affordability, value, access, and well-being for consumers. Visit www.ahip.org for more information.