The Drug Rebate Rule: What’s the Budget Impact?

Numerous actuarial studies were conducted to analyze the potential impacts. The estimates vary significantly as a result of the broad range of assumptions about the likely behavioral responses from the affected stakeholders. The following are some key findings from those studies:

  • This rule will result in some degree of increased premiums for everyone, but notable out-of-pocket cost savings for some;

  • While around only 30 percent of beneficiaries will likely see net savings, their savings are expected to be so large that the overall beneficiary impact will be a net savings; and

  • Cost estimates for the federal government range from savings of $99.6 billion over 10 years to costing the government $196 billion over the same period.

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Posted on May 23, 2019 and filed under Drugs.