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Merck CEO Says More Of Drug Rebates Should End Up With Consumers

(CNBC) Jan 8, 2018 - The CEO of drug giant Merck said Monday that not enough of the rebates being negotiated for medications are being passed on to consumers.

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Winston Wong, PharmD (Posted: January 10, 2018)

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Annual drug price increases is around 7-9% annually. Negotiated Rebates help to counter these increases, but as Mr Fraizer points out, only a small portion benefits the patients directly. What little actually benefits the patient is negated by increases in copays and coinsurances. So maybe the solution is to do away with rebates entirely and move to a straight list price strategy. Then in order to achieve a coverage status, the competition is then convert to a price war. Price wars to lower cost is cleaner and more transparent than todays world of increasing prices, balanced by PBM negotiations to gain bigger rebates, only to have a good portion to go towards their profit margins, and little benefiting the patient.

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