CMS head urges PBMs to end drug rebates and other news from around the interweb:
- CMS head urges PBMs to end drug rebates. CMS chief Mehmet Oz, MD, is calling on the nation’s largest pharmacy benefit managers to voluntarily abandon the current drug rebate model, or risk its elimination by the government, Bloomberg reported June 24. “There’s a possibility that we have a window now where three big PBMs might actually consider doing away with the rebate/kickback system,” Dr. Oz said. The remarks signal that the Trump administration may revive attempts to eliminate the payments drugmakers send to pharmacy benefit managers after prescriptions are filled.
- FTC Issues Warning on Rebates That Block Lower-Cost Drugs. The Federal Trade Commission (FTC) has issued a policy statement outlining its approach to regulating pharmaceutical rebates and fees under Section 5 of the FTC Act. The statement, released on June 8, 2025, focuses on practices that allegedly harm competition in the prescription drug market. Specifically, the FTC highlights concern over rebate agreements and fee structures between pharmaceutical manufacturers and pharmacy benefit managers (PBMs), which it claims may unfairly exclude competitors or restrict access to lower-cost drugs.
- How to Create an AI Foundation for Your Benefits Strategy. Employers want to use artificial intelligence-driven analytics to drive up benefits engagement but need the right foundation in place to generate these insights. One in two employers believe that acting on analytical insights will lead to improved employee performance and engagement. It’s therefore unsurprising that employers across the globe are now planning to use AI (artificial intelligence) to generate these insights. More than eight out of 10 (85%) HR professionals plan to use AI in relation to their employee benefits over the next year. The overall goal is to understand their people and tailor employee benefits, communications, and experiences to drive up benefits engagement.
- COA Files Amicus Brief Supporting 340B Rebate Model Appeal, Warning of PBM Takeover and Urging Congressional Action. The brief, filed in the U.S. Court of Appeals for the D.C. Circuit in support of Novartis and Bristol Myers Squibb in the case Novartis Pharmaceuticals Corporation v. U.S. Department of Health & Human Services et al., docket number 24-2968, reinforces COA’s call to restore the 340B program to its original purpose – helping patients in need – by exposing and reversing the growing financial exploitation of the program by pharmacy benefit managers (PBMs) and hospital systems.
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