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Rebates are typically used to keep premiums lower, but under
UnitedHealth's plan announced last year they are distributed to
individuals at the point of sale, so that consumers pay the
lowest amount under their health insurance plans.
UnitedHealth's move builds on the existing discount programs
that were announced a year ago, which the company said will
serve more than 9 million consumers this year.
The company said that through the existing program, which came
into effect on Jan.1, it has already lowered prescription drug
costs for consumers by an average of $130 per eligible
prescription.
The insurer also said that existing members would have the
choice of adopting this plan during contract renewal.
The move by UnitedHealth and its pharmacy benefits manager (PBM)
unit OptumRx to pass on more savings to customers comes amid
widespread government scrutiny in the United States over the
industry-wide system of rebates.
Eliminating these after-market discounts is a key element of
President Donald Trump's administration plan to lower
prescription medicine costs. It had in January proposed a rule
to end rebates in a bid to lower prescription drug costs.
PBMs administer drug benefits for employers and health plans and
also run large mail-order pharmacies.
Drugmakers say they are under pressure to provide rebates to the
few PBMs that dominate the market in order to gain patient
access to their products by having them included on preferred
coverage lists.
(Reporting by Manas Mishra and Mekhla Raina in Bengaluru;
Editing by Arun Koyyur)
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