Even understanding the Trump administration's newest proposal to bring down high drug prices requires understanding the supply chain at a considerable level of detail.
Importantly, Part D is one of the most successful health care programs ever in ensuring that the health care industry does better when the health care customer does better.
The key to understanding this new reform is understanding its goal in protecting the link between the interests of the seniors picking which plan to enroll in and the various companies that provide the health care they pay for.
Currently, when Part D enrollees pay a co-pay that's proportional to the list price of the drug, the new reform requires insurance plans to base the co-pay on the actual, negotiated price they're really paying for the drug.
If the plan receives a 40% discount on the $100 drug, for a net price of $60, the rebate is now 25% of $60, $15. This change is necessary to address the difference in the composition of the drug market that is undermining the link between the well-being of customers and the companies that provide the goods and services they're paying for.
There are even reports of PBMs issuing gag orders to pharmacies to prevent them from informing customers they could buy the drug cheaper on their own.
The new Trump drug pricing reform is critical in restoring those incentives, ensuring that companies that are paid to negotiate on behalf of enrollees are bringing them lower prices.
https://www.americanthinker.com/articles/2019/04/trump_and_drug_reform.html
Importantly, Part D is one of the most successful health care programs ever in ensuring that the health care industry does better when the health care customer does better.
The key to understanding this new reform is understanding its goal in protecting the link between the interests of the seniors picking which plan to enroll in and the various companies that provide the health care they pay for.
Currently, when Part D enrollees pay a co-pay that's proportional to the list price of the drug, the new reform requires insurance plans to base the co-pay on the actual, negotiated price they're really paying for the drug.
If the plan receives a 40% discount on the $100 drug, for a net price of $60, the rebate is now 25% of $60, $15. This change is necessary to address the difference in the composition of the drug market that is undermining the link between the well-being of customers and the companies that provide the goods and services they're paying for.
There are even reports of PBMs issuing gag orders to pharmacies to prevent them from informing customers they could buy the drug cheaper on their own.
The new Trump drug pricing reform is critical in restoring those incentives, ensuring that companies that are paid to negotiate on behalf of enrollees are bringing them lower prices.
https://www.americanthinker.com/articles/2019/04/trump_and_drug_reform.html
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