Trump targets pharmacy directors in planning to reduce the costs of medical prescription medications

president Donald Trump This week, the administration will lead to “completely cutting the mediator” in the pharmaceutical industry because it aims to reduce the costs of the prescribed drugs to the Americans.

According to the “most preferred nation” executive order, Trump said on Tuesday that the United States will start paying “the lowest price in the world” for medicines. The president said that part of his plan to reduce costs includes getting rid of pharmaceutical allocations (PBMS), who are often described as “brokers” because they work as a mediator between drug manufacturers, insurance companies and pharmacies.

“We will completely cut the famous broker. No one knows who they … I heard the term for 25 years,” Trump said at a news conference on Tuesday at the White House. “We will cut the mediator and facilitate the direct sale of drugs at the most directly preferred national price for the American citizen. So we are out of the mediator. It is very important.”

No details were revealed on how to plan to lower PBMS. However, some of the drug giants in an agreement that their role needs to be changed, while telling Eli Lilly Fox Business that the only way to reduce prices for consumers is if “takes less brokers for themselves.”

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The company said: “For night, more than 60 % of the cost of the drug goes to the intermediaries. We look forward to working with the administration to fix this broken system and provide direct prices directly to consumers.”

Independent pharmacists often claim that pharmacy entitlements are blaming their financial struggles because they reduce the payment rates of medicines, which makes it difficult to cover operational costs.

However, the Pharmaceutical Welfare Administration Association argued, the National Trade Association, which represents the American PBMS, said that “PBMS is the only one to be its mission Low costs of prescribed medications The only check against unlimited pricing power of pharmaceutical companies, negotiating lower costs when there is competition. ”

What are the managers of the pharmacy advantages?

PBMS was developed in the 1960s and worked mainly as negotiators between pharmacies, insurance companies and drug manufacturers inside Prescription Suppliers.

According to the Commonwealth Fund, PBMS negotiates with drug and pharmacies manufacturers to determine the amount of medicines, which medicines can obtain and any pharmacies are part of their network.

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This means that they mainly decide the amount of insurance companies in exchange for medicines and the amount of pharmacies that receive their salaries. PBMS can also compensate for retail pharmacies directly on behalf of the insurance company. Public and private insurance companies, including Medicaid, use medicare advantage plans and insurance plans sponsored by the employer, these services,

PCMA said that “Americans are being separated from paying the highest drug prices in any nation,” but the United States needs to look at “every street” to reduce the prices of medicines.

“PCMA praises President Trump on his real -time awareness.

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“She plays an important role in the health care system by Negotiating low costs for our customers. “

According to the Commonwealth Fund, the ability of PBMS to negotiate the manufacturer’s discounts and manufacture formulas to enhance cost effectiveness should theoretically help in controlling growth in the prices of medicines and spending the patient over time, and PBMS has financial incentives that may contribute to the lush cost, to funds that share money.

For example, PBM may receive a more real estate insurance company than the pharmacy of the same medicine. This practice is called “the spread of prices”. They also direct patients to use pharmacies they possess and may pay less and less independent pharmacies for the same medicines, according to the Commonwealth Fund.