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Health care names lower as administration proposes rule to cut drug prices
Jan. 31, 2019 5:24 PM ET|By: Carl Surran, SA News Editor
Shares of health care stocks slip after-hours following the Trump administration's announcement that it plans to target "backdoor rebates" as it seeks to lower drug costs for consumers.
The proposal from the U.S. Department of Health and Human Services would limit rebates worked out between drug companies and third parties that handle Medicare Part D as well as some Medicaid delivery systems; instead, the plan would encourage discounts to be given directly to patients.
"This proposal has the potential to be the most significant change in how Americans’ drugs are priced at the pharmacy counter, ever, and finally ease the burden of the sticker shock that millions of Americans experience every month for the drugs they need," HHS Secretary Azar says.
Health care names lower as administration proposes rule to cut drug prices
Jan. 31, 2019 5:24 PM ET|By: Carl Surran, SA News Editor
Shares of health care stocks slip after-hours following the Trump administration's announcement that it plans to target "backdoor rebates" as it seeks to lower drug costs for consumers.
The proposal from the U.S. Department of Health and Human Services would limit rebates worked out between drug companies and third parties that handle Medicare Part D as well as some Medicaid delivery systems; instead, the plan would encourage discounts to be given directly to patients.
"This proposal has the potential to be the most significant change in how Americans’ drugs are priced at the pharmacy counter, ever, and finally ease the burden of the sticker shock that millions of Americans experience every month for the drugs they need," HHS Secretary Azar says.
