(Washington, D.C.) — Pharmaceutical Care Management Association (PCMA) President and CEO Mark Merritt released the following statement on a new report from QuintilesIMS Institute, Medicines Use and Spending in the U.S.: A Review of 2016 and Outlook to 2021:
“This report highlights how tools used by pharmacy benefit managers (PBMs) – including negotiating rebates and other discounts from drugmakers – increase competition and reduce costs for consumers, employers, and government programs.
PBMs have helped lower out-of-pocket costs for patients and curbed their exposure to high brand drug prices. Policymakers should leverage greater use of PBM tools in other programs to root out wasteful spending.”
Key findings from the report include:
Discounts, rebates, and other price concessions
- Discounts, rebates, and other price concessions on brands reduced spending by an estimated 28% to $323.1 billion.
- Discounts, rebates, and other price concessions offset protected brands price increases by 62% in 2016.
- Net price growth is likely to remain in the 0-3% range, largely because of the work of payers and PBMs.
- Patent expirations are expected to increase by 50% over the next five years resulting in more generic and biosimilar competition.
- Average patient out-of-pocket costs declined from $9.66 in 2013 to $8.47 in 2016.
- The list prices of brands continue to be far higher than the average actually paid by insured patients.