Rising Drug Prices Demand More Rx Rebate Disclosure: The Segal Company
March 22, 2011
"As drug prices continue to rise, prescription drug plan sponsors cannot rely on rebates to offset costs," observes Edward Kaplan, National Health Practice Leader at The Segal Company.
He points out that rebates are paid directly to the pharmacy benefit managers and may or may not be adequately disclosed and shared with plan sponsors.
"To complicate matters, drug manufacturer discount coupons provide copayment credits to members on pricey brand-name medications," Kaplan says. "These coupons are designed to provide members an incentive to utilize expensive medications when less expensive generic versions may be available."
In the end, plan sponsors generally absorb drug manufacturer price increases and also increased costs due to couponing on expensive brand name medications.
"Plan sponsors should be vigilant in demanding rebate disclosure and pursue strategies to curtail couponing efforts by their PBMs," he concludes.
To speak with Edward Kaplan about these or other prescription drug issues, please contact Mary Feldman.