Posted by Michael Wonder on 16 Aug 2018
Drug middlemen push back that rebates are to blame for high drug prices
15 August 2018 - Drug middlemen are pushing back on the Trump administration’s effort to end drug rebates, which the administration claims are a major driver of high drug prices.
The Pharmaceutical Care Management Association, which represents drug middlemen called pharmacy benefit managers, released a report on Wednesday that laid the blame for high drug prices on drugmakers. The report is an effort to counter claims from the Trump administration that PBMs are to blame for high prices.
The conflict centres on rebates negotiated between PBMs, which oversees the drug plans for employer- and union-based health plans, and drugmakers. A rebate requires the drugmaker to cover a part of the cost of the drug after it is paid for by the consumer. The PBM then sends the savings to the insurer and keeps a cut for itself.
