Humana not on board with Trump's proposed drug rebate program

|About: Centene Corporation (CNC)|By:, SA News Editor

Humana (HUM -1.8%) executives believe that the Trump administration's proposed drug rebate program, forcing insurers to pass discounts to the pharmacy counter, would raise premiums and restrict consumer choice (sounds a bit dogmatic).

CFO Brian Kane says, "Our perspective is that that would raise premiums for the broader populations. And that in of itself I think creates some disruption in the marketplace that we have to think through."

HUM adds that seniors in Medicare Part D are drawn to plans with the lowest monthly premiums, reflected in the expected loss of 50K members this year in its co-branded program with Walmart from an exodus to cheaper plans.

Express Scripts (ESRX), UnitedHealth Group (UNH -2.4%) and CVS Health (CVS -1.5%) have implemented plans this year that pass on rebates to individual customers in an effort to stay ahead of the debate over middlemen fees.

Centene (CNC -1.7%) is working with tech pharmacy benefit manager RxAdvance to develop new data-driven drug coverage models.

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