Not So Secret Partners
Pharma and PBMs have long been close “Partners”, not "Enemies"
The Current Pharma/PBM "Fee" Price Collusion "Partnership”: No Suprise!
- Pharma and PBMs have been secret partners for several decades now
- There were clear warning signs of current severe U.S. pharma/PBM price collusion
- A national health crisis that could have been avoided
The largest Pharmacy benefit managers (PBMs) were owned by pharma companies just before Medicare Part D passed into law in 2003
- The largest PBM, Medco Health (now part of Cigna/Express Scripts), was spun out of the drug company, Merck, in 2002 just a year before Part D passed into law in 2003
- When Part D was passed into law, a wide array of major whistleblower and other lawsuits alleged pharma/PBM price collusion
- Leading to large financial settlements
- Link to Whistleblower Complaint discussion of several major pharma/PBM lawsuits when Medicare Part D was being formed
DESPITE THESE SEVERE AND WIDESPREAD ABUSE/COLLUSION CONCERNS, THE DOMINANT PBMS WERE GIVEN THE PRIVILEGE OF CONTROLLING MEDICARE PART D, NOT SURPRISINGLY WITH PHARMA INDUSTRY SUPPORT
RATHER THAN LEGITIMATELY NEGOTIATING FOR LOWER PRICES FOR PART D BENEFICIARIES AND TAXPAYERS, THE DOMINANT PBMS QUICKLY COLLUDED WITH PHARMA TO MASSIVELY RAISE U.S. BRAND DRUG PRICES