In our last post, we briefly talked about Pharmacy Benefit Managers (or PBMs). We mentioned that prescription drug discount providers like Good Rx partner with traditional PBMs to bring you prescription discounts. Like many of you, we thought this was great for Americans until we started to dig a little deeper and noticed, for ourselves, the predatory pricing practices of these traditional PBMs. Let’s dive a little further into what this exactly means.
At the heart of the pharma industry, lies the PBM. PBMs are third-party administrators contracted by health plans, employers, unions, government entities and other organizations to handle their prescription drug benefits. Originally, PBMs existed solely to process drug claims collecting a small transaction fee to process these claims. As time passed, these “middlemen” began to create more costs from consumers through hidden fees. What started off as a good service at its core morphed into large corporation intent on pursuing profits at the expense of quality patient care.
Today, these traditional PBMs are making record profits with 3 of them controlling 80% of the prescription drug market. While traditional PBMs’, like Express Scripts, increased its profits by 500% since 2013. Meanwhile, prescription drug prices jumped 1,100% from 1987 to 2014 leaving 1 out of 3 Americans not filling their prescription medications due to cost. How are these traditional PBMs generating record breaking profits? These PBMs use hidden fees like CoPay Clawbacks, DIR FEES, Spread Pricing and Formulary Exclusions to maximize their earnings. These fees, amongst others, remain hidden from the public, and we do not realize the negative effects until we see the price for our medications increase.
In seeing how these predatory pricing practices of traditional PBMs have put millions of American lives at risk, we wanted to do something different. This is why Scriptly Rx only works with transparent PBMs.This simply means that we work solely with PBM organizations that do not boost profits by attaching hidden fees to the medications you buy. At Scriptly Rx, our commitment to providing prescription medication discounts without any hidden fees is what makes us different. THIS is our solution to ending the rising cost of prescription medications here in the U.S. See how much we can save you by clicking here or learn more about our commitment to drug pricing transparency here.
If you have any comments, please share them with us! We would love to hear your experiences, thoughts and concerns about this topic.