WSJ Lauds Administration for Pulling Back Drug Rebate Rule

The Wall Street Journal praised the Trump administration for dropping plans for a prescription drug rebate rule.

In an editorial published Friday, the newspaper said: "The Trump administration on Thursday abandoned one of its drug pricing rules, and the details are arcane but the lesson is simple: Regulating healthcare markets is too often a game of whack-a-mole. The administration tried to solve one problem and ended up creating others, which is a predictable result of political intervention.

"The administration rule tried to limit Medicare and Medicaid drug rebates, which are bulk discounts negotiated by brokers known as pharmacy benefit managers. The rebates aren't passed directly to consumers at the pharmacy counter, but they tend to be plowed back into plans to lower premiums for everyone.

"Thus the worry in Congress and the administration became that nixing rebates would mean premium increases for seniors in an election year."

The paper noted that "evidence on drug pricing calls for caution and calm."

"The Trump Administration deserves credit for showing humility and restraint on the rebate rule, and more of it on drug prices would be welcome," the Journal said.

• Report: White House Kills Plan for Drug Rebate Rule
• Trump: 'Favored Nations' Drug Plan Would Lower US Prices