Millions of Americas are impacted as the trend of increasing drug prices continues. Insulin prices are beginning to soar, more than doubling in the past 5 years, creating trouble for those who depend on the drug.. However, the revenue from these increases are not going to the drug makers, but instead is landing in the hands of pharmacy-benefit managers (PBMs).
In the recent article written by Denis Roland & Peter Loftus, it states:
“Net prices, or what drugmakers retain after discounts, have stayed the same or fallen in the past two years as the pharmaceutical companies compete to offer ever-deeper discounts to stay on the preferred drug lists at insurers and the PBM middlemen.
The reason drugmakers sharply raise list prices without a corresponding increase in net price is that PBMs demand higher rebates in exchange for including the drug on their preferred-drug lists, said Enrique Conterno, president of Lilly’s diabetes business”
It is clear that the increase in drug prices reflects the growing role of PBMs as they act as the middlemen, negotiating rebates and fees based on list price. In this particular case, PBMs are taking advantage of a drug that millions of people rely on every day to maintain their blood glucose levels. These reoccurring events that continue to arise give reason to believe that the health care system needs to be more transparent, so that the American people can understand and return faith to the best healthcare system in the world.
Read the full article, Insulin Prices Soar While Drugmakers’ Share Stays Flat, from the Wall Street Journal for more insight on this topic.