The evidence is clear: pharmacy benefit companies lower prescription drug costs for employers, labor union plans, taxpayers, and patients.

While big drug companies push a false narrative designed to shift attention and scrutiny for the high prices they set on their products, pharmacy benefit companies are saving health plan sponsors, like employers and labor unions, $878 per patient per year on prescription drug costs. These savings allow employers and labor unions to keep offering quality drug benefits to their employees and retirees across America – ensuring that premiums are affordable, that patients have choice and access to pharmacies, and that they can get the drug therapies they need at a price they can afford.

Pharmacy benefit companies save employers, labor union plans, and patients a whopping $124 billion per year on prescription drug costs. For just brand name drugs alone, pharmacy benefit companies help save $46 billion annually.

On generics, the savings generated from pharmacy benefit companies result in a $74 per patient per year saving, which comes out to a $4 saving per prescription. For brand name drugs, the savings come out to approximately $525 per patient or $206 per prescription. On specialty drugs, pharmacy benefit companies save $279 per patient per year, saving $1,313 per prescription.

Legislation aimed at restricting pharmacy benefit companies from offering options will result in increased prescription drug costs and less choice for plan sponsors. That would make it harder for employers, including small businesses and unions, to access a variety of coverage choices and flexibility that help them provide affordable, quality prescription drug coverage. Lawmakers must instead focus on policies that encourage competition – the most effective way to lower prescription drug costs.

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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.