PBM lobby group video explains why drug pricing should stay secretive

The Pharmaceutical Care Management Association, a major lobby group for pharmacy benefit manufacturers, released a video about a heavily discussed topic: price transparency.

PBMs are third-party companies that manage prescription benefits for health plans. They are responsible for negotiating rebates with drugmakers to help keep prices low. However, PBMs have faced large scrutiny in recent months over the lack of transparency surrounding these rebates, with many drugmakers blaming these middlemen as the source of rising drug costs, reports Business Insider.

PCMA's video says drug price transparency holds several definitions. To patients, it means information on premiums and co-pays. For employers and unions offering benefits, transparency means knowing how much they'll pay for each prescription filled. PCMA says these types of drug transparency are helpful and widely used in today's industry.

However, a third type of drug transparency could hurt consumers, the video says.

"Government mandates that would give drug companies inside information could help them collude with their competitors," the video states. "That would drive drug prices up, not down."

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