New Restrictions on Drug Pricing Proposed

Meanwhile, a bill offered in the House (HR-4489) seeks to more tightly control the cost of prescription drugs in the FEHB—which annually are cited as a major driver of premium increases--through new policies affecting pharmaceutical benefit managers, which are firms that act as intermediaries between drug makers and insurance companies. It would require those firms to pass along to the insurance companies more of the savings achieved through rebates and incentives from the manufacturers, impose certain caps on drug prices and make the process more transparent. Main sponsor Rep. Stephen Lynch, D-Mass., chair of the House federal workforce subcommittee, has held a series of hearings at which critics of the current system argued that prescription drugs are more expensive in the FEHB than in other government-run insurance programs such as the VA medical system.

 

Back | Published: September 8, 2010