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Government Talks about Rx Costs, But MedBen Already Has Solutions

06/17/18

  08:13:00 pm, by MedBen5   , 229 words,  
Categories: News, Cost savings, Pharmacy benefit manager (PBM)

Government Talks about Rx Costs, But MedBen Already Has Solutions

pharmacist dispensing pills

During recent testimony to a Senate committee, Health and Human Services Secretary Alex Azar floated the idea of eliminating the rebates that drug companies and pharmacy benefit managers (PBMs) use in price negotiations. As noted on Bloomberg.com, "PBMs have been criticized for keeping some of the rebates for themselves instead of passing them directly to consumers to lower their out-of-pocket costs."

As long-time MedBen clients know well, when it comes to drug rebates, we believe in total transparency – and we partner with PBMs who share our philosophy. Therefore, employers can be certain that 100% of paid rebates are returned to their plan.

In his testimony, Azar also commented that he thinks that instead of offering rebates, PBMs and drug companies should just negotiate fixed-price contracts. “Such a system’s incentives, detached from artificial list prices, would likely serve patients far better,” he said.

As it happens, MedBen Rx Advocate program takes a very similar approach to what Azar is proposing. Rather than using an artificially inflated average wholesale price, Rx Advocate takes the actual average cost the pharmacist pays for the drug and adds a reasonable dispensing fee as compensation. Straightforward, fair, and reduces the employer's pharmacy spending by an average of 11%.

While the government searches for solutions to high drug costs, MedBen already has them. Find out more by contacting Vice President of Sales & Marketing Brian Fargus at bfargus@medben.com.

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