Health Care

Rebates for pharmaceutical middlemen targeted by legislators

Pharmacy benefit manager practices are under the microscope of state lawmakers, as well as Congress.
A CVS Pharmacy in the Harlem neighborhood of New York City. (AP Photo/Ted Shaffrey, File)

State lawmakers seeking to lower drug prices are zeroing in on rebates negotiated between pharmacy benefit managers and drug manufacturers in an opaque system they say steers profits to behind-the-scenes operators while patients bear the expense. 

Rebates are among the latest areas of contention as state lawmakers, and now Congress as well, place pressure on pharmacy benefit managers — companies that contract with health plans to administer prescription drug benefits. 

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