This week, the U.S. Senate Health, Education, Labor & Pensions (HELP) Committee considers legislation that would lower choice in the market by creating a one-size-fits all pharmacy benefit contracting model for health plans and employers. As Congress considers mandating contracting between pharmacy benefit companies and clients, the Pharmaceutical Care Management Association (PCMA) released a new Rx Research Corner blog, by Vice President of Research Amanda Frost, that shows how the competitive pharmacy benefit company marketplace continues to evolve, with 73 full-service pharmacy benefit companies today.
Read the full Rx Research Corner blog HERE.
Amanda writes:
“In just two years, six new pharmacy benefit companies entered the marketplace, an almost nine percent increase. The increase in the number of PBMs here matches the increase we saw in the previous dataset with six new pharmacy benefit companies in two years from 2019 to 2021. In 2019, we had a baseline number of 66 full-service PBMs in the marketplace. We added six new companies for our 2021 count and an additional six companies for our 2023 count. Twelve new pharmacy benefit companies in four years are an 18 percent increase in new full-service PBMs…”
“One big takeaway from these numbers is how dynamic the pharmacy benefit company marketplace is both changing and expanding. New companies entering the market create additional competitors and help drive innovation. Not all pharmacy benefit companies are the same. They distinguish themselves through the choices they offer to payers and patients. But what they all have in common is securing affordable and accessible prescription drugs for employers, labor unions, governments, payers, patients, and taxpayers.”
The blog also highlights that a more competitive PBM marketplace allows for more choices for plan sponsors on their pharmacy benefits:
“The number of companies operating in the market is an important reminder that PBM customers have a number of choices when choosing which company to work with on their pharmacy benefits. And as the number of companies in the marketplace increases, this creates more pharmacy benefit companies competing for business and more choices for employers, labor unions, and other customers.”
View the infographic on the pharmacy benefit marketplace HERE.
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Learn more about public policy solutions that would promote competition in the prescription drug market and effectively lower prices for patients HERE.
PCMA’s recent Policy Forum, held on April 25, 2023, featured policymakers – including key Administration officials and Congressional staffers – and PBM executives to discuss how the public and private sectors are tackling drug costs and improving both the affordability and quality of care for patients. View the PCMA Policy Forum HERE.
The Hill recently hosted and PCMA sponsored an event titled, “Prescription for Change: Improving Competition to Lower Drug Prices,” where lawmakers and a panel of drug pricing and economic experts discussed the importance of promoting competition as the most effective way to lower prescription drug costs. Watch the event HERE.
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PCMA is the national association representing America’s pharmacy benefit companies. Pharmacy benefit companies are working every day to secure savings, enable better health outcomes, and support access to quality prescription drug coverage for more than 275 million patients. Learn more at www.pcmanet.org
