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PBMs: Maligned as Middlemen, They're Hearing Wedding Bells.
Managed Care (Langhorne, Pa.)
|July 11, 2018
Summary
The Pharmacy Benefit Manager (PBM) industry faces criticism for its lack of transparency in pricing and contracts. Potential solutions like partnerships with insurers and retailers are debated, with concerns about rising drug costs.
Area of Science:
- Health Economics
- Pharmaceutical Policy
Background:
- The Pharmacy Benefit Manager (PBM) industry is currently facing significant scrutiny.
- Critics cite a lack of transparency, complex contract language, and opaque pricing structures as major concerns.
Purpose of the Study:
- To explore the criticisms leveled against the PBM industry regarding transparency and pricing.
- To examine potential solutions and their implications for drug pricing.
Main Methods:
- Analysis of industry practices and critical viewpoints.
- Review of proposed partnerships between PBMs, insurers, and retailers.
Main Results:
- The PBM industry is criticized for non-transparent practices including rebates, discounts, and fees.
- Partnerships with insurers and retailers are proposed as a potential solution to PBM industry issues.
Conclusions:
- The proposed solutions of PBM partnerships may lead to increased drug prices.
- Further investigation into PBM transparency and pricing models is warranted.
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