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The Safe Harbors Stay Put, but the March Toward Change Continues

July 12, 2019

By Jesse Mendelsohn, VP, Model N Center of Excellence

On Thursday, July 11, 2019, many of us (especially those on the west coast) woke up to news that the Trump administration had pulled the plug on the plan to remove the safe harbor for Part D rebates paid by manufacturers. This came as a shock to many – with all the preparation, supposition, planning, and intense work put into adapting to this rule, many were both relieved while at the same time perplexed. 

The Trump administration did emphasize its commitment to lowering drug prices and the issue of reducing drug price “sticker shock” is something both parties agree on. Could the pullback of this rule indicate something different is in the works? Will there be a bigger announcement in the coming months? Only time can tell – but it’s certainly possible.  We have no doubt the march toward price transparency will continue, whether it is driven by regulatory mandate or market forces, and will continue to work with our customers to make sure they are ready for future changes, as we planned to work with them on this one. 

Please stay connected with Model N on our blog, microsite, LinkedIn group, as well as our webinars, as we continue the conversation around the march toward price transparency. We will keep you up to speed on all developments and welcome your participation in the conversation.


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US business3D illustration of a rubber stamp with the word tariff stamped on paper background. Concept of taxes or duties on imported goods.