Rising care costs Average out-of-pocket costs associated with rebates were highest for uninsured patients ($39), followed by Medicare patients ($13), and then those with commercial insurance ($6). (Photo: Shutterstock)

Drug rebates for insurers often are associated with increases in out-of-pocket costs for patients, according to a new University of Washington study that examined cost and price data on more than 400 branded drugs.

“We know that list prices have been increasing quite dramatically as have rebates, but no one has looked into the association between rebates and out-of-pocket costs,” Kai Yeung, the study’s lead author and an affiliate assistant professor at the CHOICE Institute in the UW School of Pharmacy, said in a statement issued by the university. ”Increases in out-of-pocket costs are associated with rebates; however, rebates also help keep premium costs down. [Consequently], there has been inadequate focus on the impact the pricing mechanism has on the uninsured, who are most affected.”

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?



Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.