Drug Benefit Firms Devise New Fees That Go to Them, Not Clients
From Bloomberg, In Print — Aug 22nd, 2023
Pharmacy benefit managers (PBMs), created in the 1960s to help insurers control prescription drug costs, are now often criticized for driving prices up. Originally praised for leveraging collective buying power to negotiate lower drug prices, PBMs are increasingly under scrutiny for side deals with pharmaceutical companies that allow them to pocket extra cash. Recent changes in how PBMs label these payments make it harder for clients to track discounts and ensure savings are passed on.
"Severing the link between fees and drug prices “is probably the most significant thing” Congress could do to change how PBMs operate. Lawmakers are always playing whack-a-mole, and they’re always a little bit behind.” — Spencer Perlman
This excerpt and any accompanying media (including audio, video, or images) are shared under the principles of fair use, for informational and archival purposes only. All rights remain with the original publisher.