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Stop Big Pharma’s $32 Billion Money Grab
Big Pharma already games the system to block competition and keep drug prices high. Now, Big Pharma is pushing a self-serving “delinking” agenda, which would give Big Pharma a $32 BILLION windfall at the expense of hardworking Americans, including seniors.
Big Pharma’s latest “delinking” would:
Increase health care costs
Undermine competition
Boost Big Pharma’s profits
All while threatening Medicare Part D beneficiaries, especially seniors, with BILLIONS in increased premiums.
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” Agenda:
It’s a Big Pharma Money Grab From Americans:
“Delinking” 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:
“Delinking” 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 a staggering $13 billion.
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 money grab “delinking” agenda.
Rebates Unrelated to Higher Drug Prices
Ending Pay for PBM Performance: Consequences for Prescription Drug Prices, Utilization, and Government Spending
PBMs are working every day on behalf of employers, helping them provide high-quality, cost-effective prescription drug coverage to employees and their families.
