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“There is, however, a major caveat: The CPI is a highly imperfect measure of drug price trends because it does not capture the rebates that drug manufacturers pay to insurers and pharmacy benefit managers. Thus, the CPI essentially measures the list prices of prescription drugs, not true net prices. Rebates are frequently large, so trends …

“There is, however, a major caveat: The CPI is a highly imperfect measure of drug price trends because it does not capture the rebates that drug manufacturers pay to insurers and pharmacy benefit managers. Thus, the CPI essentially measures the list prices of prescription drugs, not true net prices. Rebates are frequently large, so trends in net prices can differ materially from trends in list prices.”.

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