Posted by Michael Wonder on 28 Aug 2018
PBMs are hogging our drug discounts
28 August 2018 - The Trump administration has aimed a dagger at the heart of high pharmacy bills: the go-betweens in the supply chain that have been gouging insurers, drug makers, and, most importantly, consumers.
Through its blueprint to reduce drug spending—called American Patients First—the administration has invited public comment on the role and responsibilities of pharmacy benefit managers, or PBMs. These are the mega-corporations that health insurers hire to administer their drug benefits.
Officials surely got an earful. In their role as go-betweens, PBMs negotiate big discounts from drugmakers. But rather than passing those savings on to insurers and consumers, they have found ways to pocket many of the proceeds for themselves.
