Matt Eyles, president and CEO of America's Health Insurance Plans (AHIP) released the following statement on a new report from the Office of Inspector General for the United States Department of Health and Human Services (HHS-OIG). The report shows that rebates negotiated by health insurance providers and pharmacy benefit managers (PBMs) have slowed Medicare Part D spending on brand name drugs:
"Drug prices are out-of-control. As the bargaining power of patients, consumers and taxpayers, health insurance providers and their PBM partners negotiate hard with drug makers so Americans can get the drugs they need at a more affordable price. This new HHS-OIG report repudiates one of Big Pharma's biggest myths: that the savings we negotiate drive drug prices up. The truth is this report clearly demonstrates our effectiveness as a negotiator - and the rebates we secure for seniors in Part D lead to lower costs.
"But make no mistake. The problem of high list prices - set and controlled solely by drug makers - remains a huge problem. When manufacturers with patent monopolies set outrageous list prices at launch, even the most hard-nosed negotiations cannot make drugs as affordable as they should be for consumers.
"Nearly 46 million Americans receive their prescription drug coverage through Medicare Part D because it offers value and choice. As patients' bargaining power, we will continue to deliver on that promise and ensure every American has access to the prescription drugs they need at a cost they can afford."