OnDemand WTP Pricing Research

Trump’s Drug Blueprint Could Alter PBM Contracting | SHRM

With much fanfare, President Donald Trump’s administration recently released a 44-page blueprint for executive action on drug pricing titled American Patients First. The blueprint proposes steps to end drug manufacturers’ “gaming” of the regulatory process and to create incentives for pharmaceutical companies to lower list prices. The proposals regarding pharmacy benefit manager (PBM) firms, in particular, could affect drug costs covered by employer-sponsored group health plans.

PBMs use factors such as customer volume or the availability of competing drugs to negotiate lower costs through rebates or discounts, which are incentives to include a manufacturer’s drugs on the PBMs’ formularies. But as SHRM Online has reported (see below), the Pharmacy Benefit Management Institute found that only three-quarters of employers directly receive any portion of these manufacturer rebates.

Here is a roundup of responses to the administration’s PBM proposals.

Plan to Reduce Prescription Drug Prices Will Have an Impact

The blueprint calls for the executive branch to require that drug rebates negotiated by PBMs be passed directly on to patients using those drugs, instead of being used to reduce plan premiums generally. This should inspire more and wider use of rebates, because price-sensitive consumers will benefit from lower prices on the drugs they themselves use.

Read complete article here:

Trump’s Drug Blueprint Could Alter PBM Contracting.

Post a Comment

WP-SpamFree by Pole Position Marketing