‘Instead of benefiting from wholesale pricing, employers and their employees are being held hostage by Pharmacy Benefit Managers who have gamed the system,’ says Katy Talento

 WASHINGTON — Filling prescriptions by mail, which was supposed to save employers and their employees money, is now driving up their costs.

“Drugs delivered by mail are costing multiples more than those picked up at a store counter,” according to the Wall Street Journal.

“Markups were as much as 35 times higher than what other pharmacies charged, according to a recent analysis of millions of prescriptions in Washington state.

“That is partly because of price markups on prescriptions filled by mail-order pharmacies—especially those owned by the pharmacy benefit managers, or PBMs, themselves—according to employers and consultants who have reviewed businesses’ drug spending.”

“Instead of benefiting from wholesale pricing via mail orders, employers and their employees are being held hostage by Pharmacy Benefit Managers who have gamed the system,” says Katy Talento, executive director of the Alliance of Health Care Sharing Ministries (The Alliance, ahcsm.org).

“The PBM industry, with only three giant companies controlling almost 80% of the market, tells employers or insurance carriers that it will save them money — but the opposite is happening.

“The idea with mailed prescriptions is high-volume marketing, but the middlemen are pocketing much of the savings instead of passing them on to employers. They allow patients access to products that deliver the biggest kickback to the PBM, instead of cheaper and equally effective drugs.

“Some have merged with insurers administering employer plans instead of having to compete for their business. PBMs have even sued the federal government to block a regulation that would have required them to disclose to employers the size of their kickbacks.

 “This is all the more reason for Christians to turn to Health Care Sharing Ministries, which offer their members help with cash price discounts on medications.”

 Generic prescriptions from by-mail pharmacies “were marked up on average more than three times higher than prescriptions filled by bricks-and-mortar pharmacies, according to a recent analysis by 3 Axis Advisors, a healthcare research firm,” the Journal reported.

“The Alliance of Health Care Sharing Ministries has long advocated more transparency in health costs of all kinds, from drug prices to medical treatments to hospital stays,” Talento says.

“Christians who aren’t happy with current health care choices have an attractive, affordable alternative that is consistent with their values. Health Care Sharing Ministries offer less cost, less red tape and more choices for health care consumers. In addition, members can live out the biblical admonition to show love for one another in practical ways, such as helping with each other’s medical expenses along with prayers and encouragement.”

Founded in 2007 and headquartered in Washington, D.C., the Alliance of Health Care Sharing Ministries is a 501(c)(6) trade organization representing the common interests of Health Care Sharing Ministries which are facilitating the sharing of health care needs (financial, emotional, and spiritual) by individuals and families, and their participants. The Alliance engages with federal and state regulators, members of the media, and the Christian community to provide accurate and timely information on health care sharing.

To learn more about the Alliance of Health Care Sharing Ministries, visit www.ahcsm.org or follow the ministry on Facebook or Twitter.

To interview a representative from The Alliance of Health Care Sharing Ministries, contact Media@HamiltonStrategies.com, Beth Bogucki, 610.584.1096, ext. 105.

 

###  To interview a representative from The Alliance of Health Care Sharing Ministries, contact Media@HamiltonStrategies.com, Beth Bogucki, 610.584.1096, ext. 105.