Reducing Drug Prices
Over the past decade, the cost of prescription drugs has increased three times faster than the rate of inflation. Prescription drug costs are prohibitive for many consumers and are a leading cause of ever-increasing health care coverage costs. PBGH is focused on reducing the cost of prescription drugs by addressing the underlying drivers of drug costs. We work with policymakers and stakeholders to inject more competition, transparency and value into the health care system.
One in four Americans has trouble paying for prescription drugs and four in five believe the cost of drugs is unreasonable. Everyone agrees the system is broken.
Drug manufacturers and middlemen, such as pharmacy benefit managers (PBMs), are gaming the system for profit at the expense of employers, taxpayers and the government. They’ve created a system so complex and convoluted that only they understand it. They use their power to shut out reformers and pad their bottom line. This must end — lives depend on it. That’s why EmployersRx is pressing the U.S. Congress to act now to unrig the system.
Employers’ Prescription for Affordable Drugs aims to mobilize large employers to drive down prescription drug costs by advocating for public policies based on increased competition, transparency and value.
Strengthening market forces is the best way to improve efficiency and quality, but the drug market has several unique characteristics that require public policy intervention to protect consumers.
Employers should adopt value-based purchasing strategies to contain drug costs and create programs that model best practices for other companies.
Government Insurance Responsibility
Government-run insurance programs, such as Medicare, must use their bargaining power to help rein in costs for the entire drug market.
Policies to rein in drug costs should address drivers of high drug costs across the system rather than focusing on a single group, such as Medicare, and should not simply shift costs to employers and consumers.
Transparency is essential to containing costs since much of the drug supply chain is opaque to consumers due to complex payment arrangements and gag clauses.
Government should incentivize innovative drug development and prevent companies from exploiting the system for profit by blocking generics and biosimilars.
Patients, especially those with serious conditions, should not be faced with excessively high bills to obtain the medications they need to survive.
STATEMENT: PBGH Applauds Initiatives by House Leadership Aimed at Lowering Drug Prices
EmployersRx calls on Congress and industry to ensure fair and reasonable pricing for COVID-19 vaccines and therapeutic drugs.
As the COVID-19 crisis will only end when people have access to effective vaccines and therapeutic drugs, EmployersRx urges legislators, manufacturers and providers to ensure fair and reasonable pricing of these shortly anticipated treatments.
Employers Support Bipartisan Bill to Increase Drug Price Transparency and Reduce Gaming by Middlemen
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Statement of Record for House Committee on Ways and Means, Subcommittee on Health
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Employers Shoulder Plenty of Drug Costs, but Haven’t Lobbied Much to Lower Them — Until Now
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Coalition Advocates for Biosimilar Uptake to Help Lower Employers’ Drug Cost Burden
Rising drug costs in the United States are a pressing concern not only for patients who need to receive those […]