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Pharmacy Benefit Management: The Cost of Drug Price Rebates

Published online by Cambridge University Press:  04 March 2024

James C. Robinson Open the ORCID record for James C. Robinson [Opens in a new window]
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Abstract

Pharmacy Benefit Managers (PBM) induce drug manufacturers to offer rebates to insurers and employers by denying coverage through formulary exclusions, impeding physician prescription through prior authorization, and reducing patient drug use through cost sharing. As they tighten these access obstacles, PBMs reduce the net prices received by the manufacturers.

Keywords

Pharmacy Benefit ManagerPrior AuthorizationConsumer Cost SharingPrice RebatesDrug Prices
Type
Commentary
Information
Journal of Law, Medicine & Ethics , Volume 51 , Issue S2: Promoting Drug and Vaccine Innovation and Managing High Prices: Three Proposals for Policy Reform , Winter 2023 , pp. 52 - 54
Copyright
© 2023 The Author(s)

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References

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