America's pharmacy benefit managers (PBMs) work every day to ensure that more than 266 million Americans have affordable access to prescription drugs. These companies are the only entities in the drug supply chain whose mission is to lower cost the of prescription drugs.
The Administration is proposing to eliminate the use of a key tool that PBMs use to drive savings for consumers and patients - rebates from drug manufacturers to PBMs in the Medicare Part D and Medicaid managed care programs.
Unfortunately, the proposal being considered by the Administration will not lead to lower prescription drug costs but would substantially increase premiums for Medicare beneficiaries.
PBMs negotiate rebates with drug manufacturers to keep prescription drugs accessible and affordable for consumers, patients and plan sponsors. The savings that PBMs negotiate from drug manufacturers are passed on to plan sponsors to lower Medicare Part D premiums, reduce the amount consumers pay at the pharmacy counter, and enhance benefits.
This proposal should not be finalized. There are many better ways to reduce the cost of prescription drugs for our seniors, those with disabilities, and taxpayers that do not cost so much nor provide drugmakers with increased profits.