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Stop The Billion-Dollar Big Pharma Bailout
Before It’s Too Late
Big Pharma is the link between patients and high drug prices. And now they want a $32 BILLION bailout at the expense of patients, taxpayers and plan sponsors.
Big Pharma’s latest ‘delinking’ scheme would:
Increase drug prices
Stifle competition
Worsen health outcomes
All while redistributing BILLIONS annually from Medicaid alone from patients back into Big Pharma’s pockets.
The Economics of “Delinking” PBM Compensation
“A significant share of these higher costs (an estimated $6.3 billion–$21.9 billion) would accrue to drug manufacturers.[…] Therefore, the aggregate effect of delinking in the commercial market and Part D could be an increase of more than $32 billion in drug profits.” ~Alex Brill
The Problem With Delinking In Drug-Price Negotiations
“Pharmacy benefit managers are one of the few mechanisms we have for constraining pharmaceutical prices. We should think carefully before taking steps to constrain them.”
The Truth About Big Pharma’s ‘Delinking’ Bailout:
It’s a Financial Windfall for Big Pharma:
The ‘delinking’ policy has the potential to significantly increase drug prices, reduce drug utilization, and redistribute billions of dollars annually from patients and taxpayers to pharmacy companies and drug manufacturers. The result would be $32 billion for drug companies, while patients are forced to cover the costs.
Seniors Will Face Higher Premiums in Medicare Part D:
The ‘delinking’ policy will reduce the negotiated rebates and discounts PBMs pass to health plans to lower drug costs for patients and health plans. This could lead plans to raise premiums to finance drug benefits. Eliminating the pay for PBM performance incentives could also reduce insurance coverage and appropriate drug utilization as costs for patients rise.
Taxpayers Will Pay More for Medicare:
Annual federal spending on Medicare Part D premiums would increase by billions of dollars.
It Reduces PBM Competition – Hindering Tools To Keep Drug Prices Low:
‘Delinking’ will introduce a new obstacle between buyers and sellers (in this case BETWEEN health plan sponsors and PBMs) and is unlikely to increase competition or new entrants in the PBM market or improve patient welfare.
Additional Information on Rx Drug Rebates
Regulating PBMs will not reduce drug costs – it will only help keep drug prices high. Don’t fall for Big Pharma’s ‘delinking’ blame game.
Rebates Unrelated to Higher Drug Prices
Ending Pay for PBM Performance: Consequences for Prescription Drug Prices, Utilization, and Government Spending
National Bureau of Economic Research Working Paper: “Delinking” Proposals that Restrict PBM Incentives to Secure Rx Savings Will Increase Drug Prices and Provide $10B Giveaway for Big Pharma
