President Trump and every declared candidate for the presidency want to lower drug costs. And, surprise, it’s the president who has made a bold move toward a workable free market solution.
His new proposal cracks down on the price-gouging practices of middlemen in the drug supply chain — Prescription Benefit Managers (PBMs), the mega-corporations that insurers employ to administer their drug benefits.
The administration’s new proposal impacts Medicare Part D, the federal prescription drug benefit for seniors and those living with disabilities. Beneficiaries can expect more money in their pockets as a result of the proposed rule. Kudos to the president and Health and Human Services Secretary Alex Azar for putting patients first.
The Trump plan imposes new restrictions on how PBMs share rebates and discounts in the Part D program. Currently, insurers hire PBMs to negotiate with drug manufacturers. Typically, PBMs are able to secure big discounts — usually through rebates — by promising to include specific medicines on preferred insurer formularies.
These rebates aren’t pocket change. By one estimate, the average rebate knocks off nearly 40 percent of a brand name drug’s list price. That’s billions of dollars annually.
Read more:
The Illusion and Cost of Drug Rebates
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His new proposal cracks down on the price-gouging practices of middlemen in the drug supply chain — Prescription Benefit Managers (PBMs), the mega-corporations that insurers employ to administer their drug benefits.
The administration’s new proposal impacts Medicare Part D, the federal prescription drug benefit for seniors and those living with disabilities. Beneficiaries can expect more money in their pockets as a result of the proposed rule. Kudos to the president and Health and Human Services Secretary Alex Azar for putting patients first.
The Trump plan imposes new restrictions on how PBMs share rebates and discounts in the Part D program. Currently, insurers hire PBMs to negotiate with drug manufacturers. Typically, PBMs are able to secure big discounts — usually through rebates — by promising to include specific medicines on preferred insurer formularies.
These rebates aren’t pocket change. By one estimate, the average rebate knocks off nearly 40 percent of a brand name drug’s list price. That’s billions of dollars annually.
Read more:
The Illusion and Cost of Drug Rebates