The Consumers’ Case for Pharmacy Benefits Managers
INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE.
Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed Alex Brill.
Headlines scream about soaring drug costs, but who stands between comsumers and sticker shock? Pharmacy Benefit Managers (PBMs). Here’s how they help keep your budget healthy:
Negotiating Savings: PBMs wield the collective bargaining power of millions of patients, securing substantial discounts from drug manufacturers. These are savings passed directly to insurers, lowering premiums and copays for you.
Competition Counts: PBMs contract with diverse pharmacies, fostering competition that drives down prices. Think gas stations battling for your business – same principle!
Guiding Choice: PBMs develop “formularies” – lists of preferred medications with lower costs. This encourages doctors to prescribe affordable alternatives, potentially saving you hundreds.
Mail Magic: Many PBMs offer mail-order pharmacies, delivering medications directly to your door, often at significantly reduced prices. No more gas guzzling trips to the pharmacy!
Transparency Matters: While concerns about hidden fees exist, PBMs are increasingly adopting transparency initiatives. Look for PBMs committed to clear pricing and consumer access to cost-saving options.
Mind the Gap: PBMs help bridge the gap between rising drug costs and stagnant wages. They aren’t magic wands, but in this complex healthcare landscape, their role in cost control is undeniable.
According to the American Enterprise Institute, “Alex Brill is a resident fellow at the American Enterprise Institute (AEI), where he studies the impact of tax policy on the US economy as well as the fiscal, economic, and political consequences of tax, budget, health care, retirement security, and trade policies. He is the editor of Carbon Tax Policy: A Conservative Dialogue on Pro-Growth Opportunities. Before joining AEI, Brill served as the policy director and chief economist of the House Ways and Means Committee. Previously, he served on the staff of the White House Council of Economic Advisers. He has served on the staff of the President’s Fiscal Commission (Simpson-Bowles) and the Republican Platform Committee (2008). He is also the founder and CEO of the economic consulting firm Matrix Global Advisors (MGA). Brill has an MA in mathematical finance from Boston University and a BA in economics from Tufts University.”
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LISTEN TO THE INTERVIEW IN ITS ENTIRETY HERE
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