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The Department of Labor’s proposal would force pharmacy benefit managers to disclose drug pricing details to employers and open their books to audits. More than 500 comment letters show PBMs and insurers fighting the rule, while some employers and startups back it and drugmakers offer mixed support.
- DOL's proposed rule would force PBMs to disclose rebates, fees, and spread pricing to employers and submit to audits
- Over 500 comment letters split along predictable lines: PBMs/insurers oppose it as exposing confidential contracts, while Cost Plus Pharmacy and business groups support it as curbing hidden markups
- Drugmakers back reining in PBMs generally but want the disclosure rules narrowed to administrative fees, excluding drug-specific rebate data that competitors could exploit
- Rule could shift negotiating power from PBMs to employers, though employers would then face more complex data to manage in contract talks
Mark Cuban and Optum CEO Patrick Conway engaged in a heated discussion about drug prices and pharmacy benefit managers, highlighting their differing views on how to reform the healthcare system. Cuban argued for breaking up large insurance companies and criticized the lack of transparency in PBM contracts, while Conway emphasized the need to tackle high hospital and pharmaceutical costs. Both acknowledged the other's contributions but remained divided on the root causes of high drug prices and solutions.
- Cuban challenged Conway to name a specific Optum customer he could call to verify claims about PBM contract transparency
- Cuban advocates breaking up large insurance companies as a fix, blaming opaque PBM contracts for inflated drug prices
- Conway countered that high hospital and pharmaceutical costs, not just PBMs, are the core drivers of the problem
- Despite the confrontational exchange, both men acknowledged each other's contributions while disagreeing on root causes and solutions