Big Pharma’s War on Generics is forcing employers to spend more than ever on prescription drugs. These drug companies block generic drug competition, forcing patients to pay for more expensive brand drugs. Fortunately, thanks to the cost-saving actions of pharmacy benefit managers (PBMs), the impact on employers and patient out-of-pocket costs is mitigated.
A recent survey of more than 1,000 small and large businesses reveals that employers are pleased with their partnership with PBMs as they fight to increase access to medications and beat back Big Pharma’s high drug prices.
On behalf of employers, PBMs lower drug costs by negotiating with drugmakers for discounts off of the original price of the drug. The resulting net price makes drugs more affordable, which helps employers maintain drug coverage. PBMs also are doing what they can with existing generic and biosimilar drugs available in the market by encouraging employers to cover them over brand-name drugs. The survey found that employers are overwhelmingly satisfied with how PBMs are working to lower the amount they spend on prescription drugs.
Employer Action on Out-of-Pocket Costs
Equally important is how employers use the savings PBMs are achieving. The survey confirmed that 9 in 10 employers use drug discounts to reduce out-of-pocket costs for patients, and more than 80% apply the savings directly to the premiums their employees pay.
PBMs have always sent almost all of the discount dollars back to employers so they can use them for these purposes. Now, after federal PBM reform through the Consolidated Appropriations Act (CAA), PBMs will send 100% of the discount dollars to employers.
The PBM-employer partnership translates to real affordability for patients because employers use the savings PBMs deliver to help lower overall drug costs for their workers.
PBMs and employers are fighting for patients against Big Pharma’s War on Generics.
Read more about the nationwide employer survey HERE.
