Published: December 2019

Pharmacy benefit managers are driving up drug costs for patients

Coalition: Coalition to Preserve Patient Choice

States, local governments, organizations, and businesses use pharmacy benefit managers (PBMs) to negotiate lower drug prices for the individuals on their health insurance plans. Three organizations control 85 percent of this market. While PBMs play a crucial role in the drug supply chain, the lack of transparency regarding their practices has long contributed to the rising cost of prescription drugs. The PBM Transparency and Prescription Drug Costs Act (H.R. 5304) will increase transparency, hold pharmacy benefit managers (PBMs) accountable, and help lower prescription drug prices. This bipartisan bill will mandate quarterly reports on the costs, fees, and rebate information associated with PBM contracts. This reform ensures employers know the true costs of the services they are paying for and passes on savings to consumers.

One of the most significant costs to American patients is prescription drugs. In order to understand factors that drive the escalating out-of-pocket costs, coalition members support transparency in drug pricing and in the drug distribution system. Pharmacy benefit managers (PBMs) are major contributors to ballooning prices and a lack of transparency. The bipartisan PBM Transparency and Prescription Drug Costs Act (H.R. 5304) will hold PBMs accountable by requiring increased transparency in their pricing practices.

 

Other Organizations

Consumer Action | Consumer Federation of America | End AIDS Now | People's Action | Treatment Action Group

More Information

For more information, please visit Coalition to Preserve Patient Choice

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Pharmacy benefit managers are driving up drug costs for patients   (Consumer_Letter_in_Support_of_HR_5304-PBM_Bill_.pdf)

 

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