News
Connecticut Targeting PBM "Clawbacks"
Connecticut has a new law taking effect in January that will close a drug price loophole that's been the subject of more than a dozen U.S. lawsuits taking aim at a practice by PBMs called pharmacy clawbacks.
Clawbacks occur when a patient picks up a drug at the pharmacy and pays the co-payment set by their PBM, the co-payment of which is actually more than the actual cash cost of the drug. The PBM ultimately pockets the difference. Patients mostly never realize there's a cheaper cash price because of clauses in contracts between pharmacies and PBMs that bar the drugstore from telling people there's a cheaper way to pay.
Connecticut is joining Louisiana, Georgia, North Dakota, and Maine, all of which have also passed legislation aimed at stopping the clawbacks. Other states have introduced legislation related to clawbacks, which have prompted at least 16 lawsuits since October.
https://www.bloomberg.com/news/articles/2017-07-11/pharmacy-clawbacks-targeted-in-latest-state-law-aimed-at-pbms
EpiPen Price and PBMs
A new class-action lawsuit challenging the price of EpiPens is targeting not the drug's manufacturer but three PBMs and the industry's rebate practices. The lawsuit alleges that CVS Health, Express Scripts, and Prime Therapeutics practice price gouging; this includes a more than 500% increase in EpiPen's price from 2007 to 2016 by demanding increased rebates from manufacturers in exchange for favorable placement on their formularies.
Drug companies have incentives to raise prices, according to the lawsuit, in order to give larger rebates to the PBMs who then pocket significant revenues and don't pass the savings along to patients.
http://www.daytondailynews.com/news/local/epipen-lawsuit-targets-drug-price-middlemen/X1MX7GpTfd1fWOHOaSVU6J/
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