PCMA: New IQVIA Institute Report Shows PBM Tools Reduce Drug Spending

WASHINGTON, March 13, 2018 /PRNewswire-USNewswire/ -- The Pharmaceutical Care Management Association (PCMA) released the following statement on a new report from IQVIA Institute for Human Data Science, 2018 and Beyond: Outlook and Turning Points. 

Key findings from the report include:

• Rebates and discounts on brand-name drugs in the U.S. are expected to cut the annual price growth of these drugs by 50% or more through 2022.
• Net drug prices in the U.S.—including brands and generics—are actually expected to decline 1-4% annually through 2022.
• Real annual net per capita spending on medicines in the U.S. will decline in 2018 and continue almost unchanged at $800 per person through 2022.

"This report highlights how tools used by pharmacy benefit managers (PBMs) – including negotiating rebates and other discounts from drugmakers – increase competition and reduce costs for consumers, employers, and government programs. This helps reduce patients' premiums and out-of-pocket costs. Although manufacturers of a number of high priced drugs offer no rebates, PBMs can still deliver savings in other ways," said PCMA President and CEO Mark Merritt.

In addition, the report's findings on biosimilars include:

• In 2018 and 2019, six new biosimilars are expected to become available in the U.S., tripling the number currently available.
• From 2019 to 2022, $37 billion in current spending on biotech medicines in the U.S. is projected to become subject to biosimilar competition for the first time.
• Humira, the top selling drug in the U.S., could become subject to biosimilar competition as early as 2019, but litigation could potentially delay competition until 2023.

"Biosimilars already account for nearly 50% of the market in some classes, saving payers millions annually. FDA can do its part by finalizing workable interchangeability guidelines to help increase the uptake of biosimilars," Merritt added.

PCMA is the national association representing America's pharmacy benefit managers (PBMs). PBMs administer prescription drug plans for more than 266 million Americans who have health insurance from a variety of sponsors including: commercial health plans, self-insured employer plans, union plans, Medicare Part D plans, the Federal Employees Health Benefits Program (FEHBP), state government employee plans, Medicaid plans, and others.

SOURCE Pharmaceutical Care Management Association