Pharmacy benefit companies push big drug companies for price concessions through rebates. 99.6 percent of rebates get passed directly to Medicare Part D plans, and 91 percent to other health plan sponsors, like employers and unions, who use those savings to help patients, including by lowering premiums, reducing cost-sharing at the pharmacy counter, or providing more comprehensive benefit offerings.

The data is overwhelming that rebates result in savings for employers and patients – and that rebates are not correlated with higher drug prices, which are set solely by the manufacturer. Most prescription drugs do not have rebates, including 81 percent of prescription drugs in Medicare Part D, and big drug companies continue to raise prices on prescriptions regardless of rebates.

Legislation aimed at eliminating pharmacy benefits, including rebates, will increase prescription drug costs for patients and families. Legislators should instead focus on policies that strengthen competition in the market – which is the most effective way to lower costs – and address a root cause of high drug prices which is big drug companies’ abuse of the patent system to keep more affordable alternatives from entering the market.

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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.

See how rebates have no correlation to high prescription drug prices HERE.

Learn more about the critical role of pharmacy benefit companies and how Big Pharma’s egregious practices are the root cause of high drug prices 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