The Coalition for Affordable Prescription Drugs (CAPD), a diverse group of employers, labor unions, pharmacy benefit managers (PBMs), health plans, and state employees and retirees, issued the following statement in response to today’s announcement by the Centers for Medicare and Medicaid Services (CMS):
“We are pleased that by increasing the negotiating tools available for Medicare Advantage plans, the Administration has recognized the savings and value PBMs drive in the drug supply chain using proven private sector tools to drive down the prices of prescription drugs. The negotiating tools used by PBMs in Medicare Part D have the potential to create savings up to $1 billion annually in the Medicare Part B program and we look forward to integrating these tools to lower costs and improve the quality of care.
“Research shows that PBMs already deliver significant savings for Medicare Part D, saving the program $47 billion in 2014 and are projected to save nearly $900 billion over the next ten years. Today’s announcement further highlights the critical role PBMs play in protecting seniors and taxpayers and why we cannot afford to remove any of these negotiating tools in the face of rising drug prices set by Big Pharma.”