Testimony Opposing 2180: Point-of-Sale Rebates

TAHP agrees something must be done to lower prescription drug prices and that 100% of rebates
should be used to reduce health care costs. However, TAHP believes that employers should have
the choice of how to best use the rebate savings, whether it be to lower premiums for all
members of the plan, add more generous benefits, or utilize the savings to lower costs at the
pharmacy counter. Taking away this flexibility is the wrong approach. Currently, most employers
use drug rebates to collectively lower the cost of health insurance for all employees, helping to
keep coverage affordable. Point-of-sale rebates, however, significantly increase premiums. They
benefit a small number of individuals at the pharmacy counter, usually around 3-5%. Under this
approach, only a few patients see their costs go down at the pharmacy counter for one drug, but
premiums and out-of-pocket costs will go up for everyone.

Read the full letter.

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