New Brief: End Anti-Market Distortions in Current PBM System Would Lower Patient Costs, Increase Access to Life-Saving Drugs
PBMs earn revenues from fees charged to pharmacies and plans, a percentage of negotiated discounts with manufacturers, and fees tied to the drug's list price.
- PBMs earn revenues from fees charged to pharmacies and plans, a percentage of negotiated discounts with manufacturers, and fees tied to the drug's list price.
- They earn more money when drug list prices are high, which has encouraged a rise in list prices in recent years.
- However, patient costs are rising because their out-of-pocket costs are based on the inflated list prices.
- He rejects the arguments of reform critics, who say eliminating PBM abuses would push the U.S. healthcare system "one step closer" to a socialized system.