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The Trump administration will no longer move forward on a proposed rule to eliminate the arcane rebates that flow from drugmakers to middleman pharmacy benefit managers, a significant reversal on one of the White House’s most sweeping actions to-date to curb rising treatment costs.

“Based on careful analysis and thorough consideration, the president has decided to withdraw the rebate rule,” spokesperson Judd Deere said in a statement. “The Trump administration is encouraged by continuing bipartisan conversations about legislation to reduce outrageous drug costs imposed on the American people, and President Trump will consider using any and all tools to ensure that prescription drug costs will continue to decline.”

In recent weeks, Politico and other publications reported that the White House and Health and Human Services Secretary Alex Azar disagreed over the rule.

And the proposal had faced resistance from domestic policy chief Joe Grogan and other fiscal hawks on grounds that it was too expensive – costing the government nearly $180 billion over a decade.

Some lawmakers also worried the rule would raise seniors’ Medicare Part D premiums.

The death of the proposal is also bad news for drug companies in that it is a sign that other Trump administration efforts could move forward, some of which the companies fiercely oppose.

Most prominently, the administration has proposed tying some Medicare drug prices to lower prices in other countries, a proposal currently under review at the White House.

Democrats, including Speaker Nancy Pelosi (D-Calif.), also opposed the rebate rule, favoring more direct actions against drug companies. White House staff has been in talks with Pelosi’s office for months on Medicare negotiating drug prices.