Pharmacy industry report says price discounts miss mark

A group representing pharmacy benefit managers is criticizing a report by a drug industry lobbying group that concludes the managers are not passing along drug rebates and discounts to patients.
The report from the Pharmaceutical Research and Manufacturers of America (PhRMA) blames the middlemen in the drug supply chain for not passing discounts from pharmaceutical companies on to customers with health insurance. As a result, about one-fifth of the patients are paying the full price for their prescription medications, the study said.
But the Pharmaceutical Care Management Association (PCMA) countered that the core problem is increasing drug costs rather than insurance coverage issues.
“The simplest, most obvious way for drug makers to reduce costs and improve access is to cut their prices,” PCMA said in a statement released Wednesday.
Out-of-pocket costs for drugs is dropping overall, according to the Centers for Medicare and Medicaid Services. This amount represented 26 percent of drug spending in 2006 but in 2016 was projected to be 13 percent, PCMA said.
The reason that health plans are not applying the manufacturer discounts on all drugs is that they’re using the savings to lower overall premium costs to insured patients, according to the PCMA. Many health plans promote less expensive generic drugs, which represent nine out of every 10 prescriptions and offer the same effectiveness, the PMCA said.
“The employers and unions that offer coverage know better than the drug industry what’s best for their patient populations,” the PCMA said. “Whether health plans decide to reduce costs by reducing premiums for all or cost-sharing on certain drugs should be up to them – not drug makers.”