Tuesday, April 16, 2019

Drug Pricing Hearing May Show A 'Disconnect' Between PBMs and Senators


At a recent Senate hearing about how to ground soaring prescription drug prices, five executives from the nation's largest PBMs testified before federal lawmakers — the former trying to underscore their value as middlemen, the latter pushing for more transparency in PBMs' negotiations with pharma manufacturers. Despite a few contentious moments, senators largely appeared to lob soft questions about PBMs' business model, and the PBM executives parried with muted responses.
"It reminds me of Senate hearings with Facebook where there was clearly a disconnect with senators," says Yusuf Rashid, R.Ph., vice president of pharmacy and vendor relationship management at Community Health Plan of Washington.
In response to questions, the five executives of Cigna Corp., CVS Health Corp., Humana Inc., UnitedHealth Group's OptumRx and Prime Therapeutics LLC testified that the PBM business remains competitive despite industry consolidation. They stressed the importance of consumer choice and blamed high costs on pharma manufacturers' list prices. They also warned that forcing disclosures could hinder their rebate negotiations with drugmakers.
Leerink analyst David Larsen said in a note to investors that, in his firm's view, despite PBMs' "commentary around the ability to 'audit' data, there is still a significant lack of transparency in the PBM space." He added that "Drug pricing reform is generally a headwind for the entire pharma supply chain."
Yet Dea Belazi, Pharm.D., president and CEO of AscellaHealth, thinks "[the PBM representatives at the Senate hearing] were following the script quite well."
"The Congress wasn't punching hard and there wasn't a lot of contention, and that automatically tells me there’s a lack of desire to rock the boat," says Belazi.

No comments:

Post a Comment