Trump targets pharmacy benefit managers in plan to slash prescription drug costs

President Donald Trump This week, it said that the administration is going to “fully cut the mediator” in the pharmaceutical industry, as it aims to reduce prescription drugs for Americans.

According to the exercise of the “most favorable nation” of the administration, Trump said that the United States will start paying the “lowest price in the world” medicines. The President said that some of his plan to reduce expenses would be released from pharmacy benefits (PBMS), which are often described as “mediators” as they act as mediators’ manufacturers, insuranceers and pharmacies.

“We are completely cut to the famous mediator. No one knows who they are … I listen to the term for 25 years, “Trump said at a news conference on Tuesday. “We are going to cut the mediator and make the direct sale of drugs to the most favorable national price directly to the American citizen. So we are very important.

President Donald Trump, who has left, holds an executive order on drug prescription pricing, Homeland and Human Service Secretary Robert F. During the Kennedy, the Jr., on May 12, at a press conference in Washington, a press conference in Washington, (Reuters / Nathan Howard / Reuters)

He did not publish details about how he plans to cut PBMS. However, some pharmaceutical giants agree that their role needs to change, Lily, who says the Fox Business, that the only way to reduce prices for US consumers, “mediators take less than themselves.”

Trump says drug prices will be cut as 90%. What to know

“More than 60% of the cost of medicine for Lili go to the mediators. We look forward to working with the administration to correct this broken system, “the company said.

Independent pharmacists often claim that pharmacy benefit managers are guilty of their financial struggle, as they reduce compensation rates for medications, which makes operational expenses difficult.

Image of medicine in the pharmacy of Walgreens. (Jeffrey Greenberg / Universal Images Group Via Getty Images / Getty Images)

However, the International Association of Pharmaceutical Care Management, the National Trade Association of PBMs, claims that “PBMS is the only one who is the mission. Low drug prescription expenses And the only check against the force of unlimited drug pricing, which negotiates the lower costs where competition exists. ”

What are the managers of pharmaceutical benefit?

PBMS was developed in the 1960s and substantially acts as negotiations for pharmacies, insurance and drug manufacturers prescription drug supply network.

According to the Cooperation Foundation, PBMS complains about drug producers and pharmacies to determine how much drugs are being spent, which medications can be purchased.

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This means that they are, in fact, decide how insurers pay for medications and how many pharmacies are paid. PBMS can directly compensate retail pharmacies on behalf of the Insurer. Social and private insurers, including Medicaid, and Medicare’s advantage plans and employer insurance plans, use these services.

CVS pharmacy in Chicago. (SCOTT OLSON / Getty Images / Getty Images)

PCMA said that “Americans are going out of the prices of high prescription prescription prescription prescription prescription”, but that the United States should look at drug prices.

“PCMA presides over the president who is a problem for legally recognizing.

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CVs on its website say CVS CareMark is one of the largest PBMs of the nation, “critical role in the healthcare system. Negotiate low net costs for our customers. “

No embers can use Costco Pharmacies, the retail giant says in its customer service site. (Toronto Star Archives / Toronto Star Via Getty Images) / Getty Images)

According to the Cooperation Foundation, the ability of the PRBMS manufacturer to manage the formists to promote cost-efficiency should theoretically help the increase of drug prices, as well as the growth of Pament prices, as well as higher income growth.

For example, PBM can charge more insurance to the medicine than it actually pays the pharmacy for the same drug. This practice is called “Widespread Priceming”. They also drove patients to use their owners and could pay less small, independent pharmacies for the same drugs according to the Cooperation Foundation.