PCMA Response to FDA Commissioner’s Comments on Brand Drugmaker Pricing & Rebates

(Washington, D.C.) — The Pharmaceutical Care Management Association (PCMA) released the following statement today following remarks by Food and Drug Administration Commissioner Scott Gottlieb:

“Manufacturers have chosen to negotiate price concessions with pharmacy benefit managers (PBMs) using rebates, which are calculated and paid months after a drug has been dispensed. These rebates are used by payers to reduce premiums and out-of-pocket costs for patients. Recent research finds rebates have ‘lowered government costs and contributed to lower premiums for health plan enrollees.’

Getting rid of rebates would leave patients and payers, including Medicaid and Medicare, at the mercy of drug manufacturer pricing strategies. PBMs have long encouraged manufacturers to offer payers alternative ways to reduce net costs. Drugmakers set prices like any other company – according to whatever the market will bear. Simply put, the easiest way to lower costs would be for drug companies to lower their prices.”