Data Proves PBM Industry Maximized Profit At Patient Expense
SCHAUMBURG, Ill., June 15, 2020 /PRNewswire/ -- The Alliance for Transparent and Affordable Prescriptions (ATAP) reacted today to a report issued by the Texas Department of Insurance (TDI) showing the financial activity of the pharmacy benefit manager (PBM) industry in the Lone Star State. Texas law requires that PBMs annually report to the Insurance Commissioner aggregate data on rebates.
"The Texas rebate report is unambiguous. The PBM industry has been generating significant profits while patients struggle to afford the cost of prescription drugs," stated ATAP's President Dr. Robert Levin. "Since 2016, through a complex rebate and price concession, the PBM industry in Texas pocketed more than $350 million in revenue, while passing a mere $16 million in savings to enrollees."
The data as reported by the PBM industry and compiled by the TDI may be found here: https://www.tdi.texas.gov/reports/documents/drug-price-transparency-PBMs.pdf
"PBMs owe it to patients to pass along savings to them," Dr. Levin continued. "Now that Texas is making rebate information publicly available, it will be easier for other states' officials and regulators to see the need for reforms."
ATAP will continue to advocate for more states to collect aggregated rebate data from PBMs and have the information be released to the public. Additionally, ATAP supports transparency and reporting requirements for all entities involved in the prescription drug supply chain - PBMs, insurers, and manufacturers. In fact, the Texas law that put in place the requirement for aggregate rebate reporting also included certain reporting requirements for insurers and manufacturers, reflecting the usability of ATAP's model language.
"Patients today are suffering under a system that prevents them from getting medicine they need. The PBM industry profits significantly off rebates while interrupting the provider-patient relationship, solely to increase its own profits," Dr. Levin said. "Now that light is shining on the previously hidden profit motives of the PBM industry, patients, physicians and legislators have the power to effect meaningful change. I am proud of the role ATAP holds in reforming the rebate system and look forward moving future legislation forward to-that-end."
To schedule an interview with Dr. Levin or another ATAP spokesperson, please contact Dan Rene of kglobal at 202-329-8357.
Please visit http://www.atapadvocates.com
CONTACT
Dan Rene of kglobal
202-329-8357 or daniel.rene@kglobal.com
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SOURCE The Alliance for Transparent and Affordable Prescriptions
