Big Insurer Will Pass on Discounts to Insured: $[$Business$/$Financial Desk$]$

Abelson, Reed. New York Times, Late Edition $($East Coast$)$; New York, N$.$Y$.$

$[$New York, N$.$Y$]07$ Mar $2018$: B$\mathrm{.}1.$

In response to growing consumer frustration over drug prices, UnitedHealthcare,

one of the nation's largest health insurers, said on Tuesday that it would stop

keeping millions of dollars in discounts it gets from drug companies and share them with its customers.

Dan Schumacher, the president of UnitedHealthcare, said the new policy will apply to more than seven million people who are enrolled in the company's fully insured plans, beginning next year.

"The benefit could range from a few dollars to hundreds of dollars to over a

thousand," Mr$.$ Schumacher said.

Not all drugs come with rebates that are paid to the health plan. People in plans

with high deductibles who buy drugs that carry large rebates will see the greatest savings, Mr$.$ Schumacher said.

Insurers like UnitedHealthcare, whose parent company also owns a large pharmacy benefit manager, OptumRx, have come under increasing public pressure as drug prices $--$ especially for brand$-$name drugs $--$ continue to rise, angering consumers and lawmakers. The decision by UnitedHealthcare is the latest in a series of steps taken by drug makers and health plans to try to lessen public discontent over drug prices, even as the companies spar over who is to blame.

Aiming to deflect criticism, the pharmaceutical industry has increasingly pointed the finger at both insurers and pharmacy managers for not sharing the rebates with customers filling prescriptions. The Pharmaceutical Research and Manufacturers of America, the industry trade group, rolled out an advertising campaign, "Share the Savings," last year to make the case that by passing on the discounts, plans could significantly lower patients' out$-$of$-$pocket bills. The group called UnitedHealthcare's decision "a step in the right direction."

Insurers, including UnitedHealthcare, contend that they already use the money from discounts to lower premiums for all their customers, and argue the real issue is the high cost of so many drugs.

But UnitedHealthcare seems to have blinked, signaling what could be a coming shift away from the system of convoluted deals struck between the drug companies and these middlemen, said Adam J$.$ Fein, president of Pembroke Consulting, a research firm. Although the new policy will only affect a fraction of the company's customers,