The US Office of Management and Budget is reviewing a proposal to curb kickback protections that allow pharmaceutical companies to offer insurers and pharmacy benefit managers (PBMs) rebates widely blamed for keeping drug costs high, reported Bloomberg.
While details of the proposal were not available, its title is "Removal Of Safe Harbor Protection for Rebates to Plans or PBMs Involving Prescription Pharmaceuticals and Creation of New Safe Harbor Protection."
Caitlin Oakley, spokeswoman for the Department of Health and Human Services, would not comment on pending regulations, but said "the President's 'American Patients First' blueprint to lower drug prices and reduce out-of-pocket costs clearly states that we are looking at removing safe harbor protections for drug company rebates."
FDA Commissioner Scott Gottlieb first suggested the idea of re-examining the safe harbor protections in May.
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