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HomeFocus → Pharmacy Benefit Managers Play Significant Role in Drug Pricing

Pharmacy Benefit Managers Play Significant Role in Drug Pricing Print E-mail
Written by Judi Buckalew, BSN, MPH, CAE | AAOS Now   
Monday, 23 October 2017 00:00
 
Congress, state legislatures, and the White House are united in a quest to reduce prices for prescription drugs. As attention focuses on pricing transparency for drugs, the role that pharmacy benefit managers (PBMs) play in the pricing process is also under scrutiny.
 
The complex nature of the prescription drug supply chain can be confusing, and the public may believe that drug companies are the primary cause of high drug prices. But a recent investigation by the Berkeley Research Group found that pharmaceutical manufacturers only realized 39 percent of initial gross drug expenditures (defined as "the sum of payments for prescription drugs made by patients and their health plans at the point of sale prior to any rebate, discount, or fee provided by manufacturers"), meaning that 61 percent of profits are going somewhere else.
 

Last Updated on Tuesday, 24 October 2017 17:56
 


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