Fact Sheet

Why Medicaid-Style Rebates Aren’t Good for Part D Beneficiaries or the Program

We’re taking a closer look at proposals that could hurt the success of Medicare Part D. One such proposal is to apply mandatory Medicaid-style rebates to Medicare Part D.

What these proposals fail to acknowledge are the substantial rebates that already exist in the Medicare Part D program. A key feature of Part D’s competitive structure, plans and benefit managers negotiate rebates directly with biopharmaceutical manufacturers, helping to keep costs low for both beneficiaries and taxpayers. Let’s take a look at the facts.