Drugmakers are sellers that want prices to be as high as possible, while pharmacy benefit manager are buyers representing clients that want prices as low as possible, PCMA President and CEO Mark Merritt says in this CNBC interview.
A survey conducted earlier this month by Oliver Wyman found 96% of payers intend to remain in the Affordable Care Act market, 75% plan to retain their existing geographic footprint and 71% have no plans to change their current offerings. However, the authors note payers could change their plans at any time, and about half said it was too early to determine whether and by how much premiums will rise.
AbbVie's experimental drug veliparib failed to meet primary goals in a late-stage clinical trial for non-small cell lung cancer and another for triple-negative breast cancer, according to the drugmaker. Veliparib is designed to block enzymes involved in DNA repair of cancer cells.
The Department of Justice issued subpoenas to Pfizer in an ongoing investigation into the saline market, which has been plagued by shortages since 2013. ICU Medical, which acquired Hospira Infusion Systems in February, also received a subpoena.
The pharmacy benefit managers that handle Medicare Part D plans not only "have massive buying power," they also have the ability to refuse to pay for a given drug if a more cost-efficient product exists, writes Devon Herrick. On the other hand, the federal government "lacks the willpower to say no in the face of angry seniors convinced they need a drug they heard about on TV," Herrick writes.
PCMA is the national association representing America's pharmacy benefit managers (PBMs), which administer prescription drug plans for more than 266 million Americans with health coverage provided through Fortune 500 employers, health insurance plans, labor unions, and Medicare Part D. PCMA is dedicated to enhancing the proven tools and techniques pioneered by PBMs that generate savings and access for consumers and payors.
Contact PCMA Charles Cote
Vice President, Strategic Communications