OPINION:
I thought it was important to respond with a few facts not included in Rep. Buddy Carter and Terry Wilcox’s recent op-ed, “Prescription drug pricing reform must rein in pharmacy benefit managers” (Web, Oct. 19). These facts are important and relevant to the debate over the role of PBMs in lowering drug prices for consumers.
Drug manufacturers alone set the prices for all drugs. It’s similar to the manufacturer’s suggested retail price (MSRP) for automobiles. It is at this point where negotiations start.
Research by the Pew Charitable Trust found that 90.8% of PBM rebates are passed back to health plans and employers in the commercial market. According to USC Schaeffer Center, PBMs keep just $2 of every $100 in the drug supply chain, while insurers keep just $3. The Government Accountability Office has found that 99.6% of the rebates PBMs negotiate with drug companies are passed along to Medicare Part D plans to lower costs for Medicare patients.
Employers and unions offering health benefits would spend 40% more to duplicate the work and savings generated by PBMs, according to research published in the National Bureau of Economic Research.
Instead of finger pointing, America needs everyone in the health care ecosystem to work together to address the cost and price challenges that face us all. We at PCMA are ready to have that conversation and ask others to join us.
J.C. SCOTT
President and CEO, Pharmaceutical Care Management Association (PCMA)
Washington
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