September 30, 2020
(Washington, D.C.) — Pharmaceutical Care Management Association President and CEO JC Scott issued the following statement on today’s hearing in the House Committee on Oversight and Reform on pricing practices for prescription drugs.
“We appreciate the House Oversight Committee keeping a spotlight on drug manufacturers’ pricing practices. While drug manufacturers are solely responsible for setting and increasing prescription drug prices, pharmacy benefit managers, PBMs, are the only entity reducing prescription drug costs. PBMs keep prescription drug costs and premiums in check by negotiating lower costs with drug makers and pharmacies.
We share President Trump’s intention to keep Medicare premiums affordable. However, the Administration’s decision to revive the rebate rule could dramatically increase Medicare Part D premiums by 25%. In addition, the rule does nothing to address manufacturers’ list prices for prescription drugs.
PBMs will continue working with policymakers to advance solutions that encourage greater competition to reduce drug costs for every consumer.”
- Click here for new data on how increases in drug list prices are not correlated with changes in PBM rebates.
- The Government Accountability Office found that virtually all – 99.6% – of prescription drug rebates negotiated by PBMs with drug manufacturers, in Medicare Part D, are passed through to plan sponsors and used to lower costs for Medicare beneficiaries.
- An Health and Human Services Office of Inspector General report also confirms that PBM-negotiated rebates lead to lower prescription drug costs, specifically in the Medicare prescription drug program.