according to a Health work Paper by Jeffri Joyce this month is ‘yes’. He writes:
Most PBM contracts bind their compensation to the percentage of a drug list value, leading to high cost on the formula of the plan at the cost of low-cost generic and biosimiller, there is a financial encouragement in favor of high-purgate drugs. In addition, the PBM industry is highly concentrated and is vertically integrated with the country’s largest health insurers, making PBM performance and profitability even more difficult to assess. A simple analysis of annual drug expenses at various reporting levels provides significant insights where money goes and where savings can be obtained. We find that the list of a drug in the supply chain simply reduce the compensation for the list price can reduce the annual drug expenses more than $ 95B or about 15% net expenses, without affecting the incentive of manufacturers.
What about other reforms like increase in transparency around PBM exemption?
… There will not be a change in encouragement or will not reduce the prices of drugs significantly with the aim of increasing transparency or limiting further consolving. However, compensation for the list of a drug in the supply chain can reduce the deformed incentive in the market and be an easy first step to make drugs more economical.
You Dr. Can read the full argument of Joyce Here,
