Seeking to address rising prescription drug costs, UnitedHealthcare (UNH) said Tuesday that it will pass along some rebates that the big insurer receives from drug makers, a move that may provide relief to a small portion of consumers, but was also criticized for failing to address the larger problem of rising medicine prices.
Starting next year, the insurer will redirect a majority of rebates for around 7.5 million people, and expects to reduce costs from just a few dollars to more than $1,000 for each prescription. However, the initiative will not include an estimated 18.6 million consumers who are covered by so-called self-insured plans, in which employers pay for health care benefits.
The decision comes amid rising national angst over prescription drug prices, which has sparked a restive wave of legislation from state lawmakers, but mostly paralysis in Washington, D.C. It also arrives as policymakers and others turn their attention to an opaque, but highly important component of the pharmaceutical pricing picture — the undisclosed rebates that pass between drug makers, pharmacy benefit managers and insurers.
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Assuming Mr hill is correct in this – “The problem with the model is the vast majority of rebates are generated by a small number of beneficiaries taking expensive brand and specialty drugs. ” – would that explain why the PBMs have gotten less attention until now? This really only took off with EpiPen and Heather Bresch, as I remember.