PCMA: New Government Data on 2002 Health Spending Finds PBM Techniques Helped Lower Rate of Growth in Prescription Drug Spending
Merritt: Data Are ‘Sobering Reminder to Policymakers to Preserve PBM Tools’
Washington, DC; 01.08.04 — New government data released today finds that pharmaceutical benefit managers’(PBMs) tools and techniques helped lower the rate of growth in prescription drug spending in 2002 and provides a fresh reminder to policymakers to preserve PBMs’ability to lower consumers’and purchasers’prescription drug costs, the Pharmaceutical Care Management Association (PCMA) said today.
The new data is contained in a report released today by researchers from the Centers for Medicare and Medicaid Services (CMS) and published in the current issue of Health Affairs.
“Today’s data provide fresh evidence that PBMs’tools and techniques have helped to lower the growth rate in prescription drug spending,”said PCMA President Mark Merritt. “While it may be tempting to some politicians to play election-year politics with health care, including PBMs, these data are a sobering reminder to policymakers to preserve PBMs’ability to lower prescription drug costs for working families and small businesses.”
The report finds that the growth rate for prescription drugs decelerated for the second consecutive year. In 2000, the growth rate in prescription drug spending was 17.1 percent. In 2001, it declined to 15.9 percent. In 2002, it decelerated further to 15.3 percent.
The report also finds that state Medicaid programs and private purchasers made greater use of PBM techniques Ă¢??including preferred drug lists, prior authorization for select drugs, step therapy, and flexibility and innovation in drug benefit design Ă¢??thereby contributing to a decline in the rate of growth.
“PBMs are the one proven avenue in the private sector to lower prescription drug prices,”added Mr. Merritt. “Without PBMs, consumers would be paying more and the nation’s drug spending tab would be far higher.”
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The Pharmaceutical Care Management Association (PCMA) is the national trade association representing America’s pharmaceutical benefit managers (PBMs). PCMA member companies provide pharmaceutical care management services to more than 200 million Americans.
Contact Information:
Phil Blando
202-207-3614