Who Benefits from Manufacturer Drug Rebates?
The pharmaceutical industry often points to manufacturer rebates as a reason why published data may substantially overstate both the level and the growth of prescription drug prices. Drug prices cited in the literature are generally either list prices or retail prices that ignore behind-the-scenes manufacturer rebates that offset some of what is actually paid. However, because these rebates are held as confidential information, and flow through the system in mysterious ways, there is little information on their precise effects on plan sponsors or consumers. This report sheds light on the nature and order of magnitude of these effects.
Key findings include: