Drug Companies Target PBMs and Rebates That Play a Critical Role in Lowering Drug Prices to Evade Responsibility and Boost Their Bottom Line

Big Pharma has long tried to evade culpability for the crisis of rising prescription drug prices by pointing a finger at others in the drug supply chain. Drug companies, in particular, have targeted pharmacy benefit managers (PBMs) and sought to cast them as unnecessary “middlemen,” in order to distract from Big Pharma’s egregious price-gouging behavior. And now the White House is using these same Big Pharma talking points to push a misguided proposal that would eliminate a key negotiating step that serves as the only real check on the pharmaceutical industry’s unilateral control over prices. The proposal, called the Rebate Rule, would also hand Big Pharma a more than $100 billion bailout, while increasing premiums on Medicare Part D beneficiaries and costing taxpayers billions.

The truth is, PBMs serve an essential role in the prescription drug distribution chain and work on behalf of payers and consumers to reduce prescription drug costs, increase convenience and improve safety. Today, we’re setting the record straight by debunking five other tired myths pushed by Big Pharma about PBMs and rebates.

MYTH #1: Price Savings Secured By PBMs Aren’t Passed On To Patients.
FACT: PBMs Pass The Vast Majority Of Rebates Onto Their Customers, Who Return Savings To Consumers And Patients By Way Of Lower Premiums And Reduced Cost Sharing.

MYTH #2: PBMs Are Middlemen Who Don’t Add Value To The System.

FACT: 266 Million Americans Rely On PBMs To Lower The Annual Cost Of Prescription Drugs By Up To 50 Percent.

MYTH #3: Eliminating Rebates Will Automatically Lower Drug Prices.

FACT: Rebates Are Rarely Offered For Many High-Priced Drugs That Lack Competition.

MYTH #4: Eliminating Rebates Would Benefit Medicare Seniors. 

FACT: The Government’s Own Actuaries Predict Medicare Part D Premiums Will Balloon 25 Percent Under The Proposed Rebate Rule.

And Rebates Are Demonstrated To Achieve Savings For Seniors On Medicare Part D.
MYTH #5: Banning Rebates Wouldn’t Reward Big Pharma For Price Gouging.

FACT: By The Government’s Own Analysis, The Rebate Rule Would Line Big Pharma’s Pockets With A $137 Billion Giveaway And “The Pharmaceutical Manufacturers Would Benefit From The Proposed Rule Overall.” 

Actuarial Analysis Concludes “The Costs [Of The Rebate Rule] To The Federal Government Would More Than Offset … Savings.”

Learn more about the Big Pharma bailout, aka Rebate Rule HERE.

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