PBM Reform: Addressing Insulin Costs in the Healthcare System

Friday, 20 September 2024, 11:37

PBM reform is crucial as the FTC takes legal action against major PBMs over insulin costs. This post discusses how pharmacy benefit managers are impacting medication affordability and access for patients. The legal actions aim to promote transparency and lower insulin prices in order to enhance patient care.
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PBM Reform: Addressing Insulin Costs in the Healthcare System

Understanding PBMs and Insulin Costs

The Federal Trade Commission (FTC) has initiated legal action against the three largest Pharmacy Benefit Managers (PBMs)—CVS Health's Caremark, Cigna's Express Scripts, and United Health's Optum Rx—over their role in inflating insulin prices for patients. These PBMs control a staggering 80% of prescriptions in the US, and their business practices have come under scrutiny for exacerbating insulin cost issues.

The Role of PBMs in Drug Pricing

PBMs act as intermediaries in the healthcare system, negotiating drug prices with manufacturers and determining medication coverage. However, they have been criticized for prioritizing high-rebate drugs over lower-cost biosimilars, which could offer significant savings. This misalignment raises concerns about patient access to affordable insulin, particularly for those without Medicare.

  • Insulin Pricing Trends: Over two decades, drug companies have raised insulin prices, contributing to the affordability crisis.
  • Impact on Patients: Many patients face dire health consequences when rationing insulin due to high costs.
  • Need for Reform: Experts stress that urgent PBM reforms are necessary to ensure affordable medication access.

Legislative Response and Future Actions

Although the FTC is currently focused on PBMs, it leaves the door open for future actions against insulin manufacturers. Meanwhile, proposed legislation aimed at capping out-of-pocket insulin costs is stalling in Congress, indicating the need for stronger advocacy for patient rights. With calls for change echoing from various health leaders, the future of insulin affordability hangs in the balance.


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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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