., the p.b.m. is t happy,he drug is covered on the formulary. unfortunately for all of us, drug prices go up. >> it's, it's, it's rather a startling and perverse system that has, that has evolved over time. >> reporter: secretahealth and human services alex azar testified in june before the senate health committee about the president's drug pricing plan.th azar saiadministration is considering regulatory changes that would allow rebates to be scrutinized der federal anti- kickback laws. >> we may need to move toward a rebates, where mab.m.s receive no compensation from the very phompanies that they are supposed to be negotiating against. r orter: azar, a former pharmaceutical executive, also said he's heard reports ofth p.b.m.atening drugmakers. >> we've had several drug i companies cowho are-- want to execute substantial material reductions in their drug prices. they are finding hurdles from pharmacy benefit managers and stributors, where they might say, "well, if you decreased your list price, i