Dismisses Competitor News Today : Breaking News, Live Updates & Top Stories | Vimarsana

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Recent decisions in two different antitrust cases involving price increases and marketing practices for the EpiPen address a relationship solidly embedded in the current architecture of pharmaceutical drug markets: payments between manufacturers and pharmacy benefit managers (“PBMs”) hired by health plans to manage prescription drug programs.  These new rulings suggest that while certain manufacturer rebates have come under increased scrutiny in recent years, the standard industry practice remains on firm footing.
In general, health plans hire PBMs to design, manage, and administer drug benefit programs, including to (i) negotiate with manufacturers to obtain rebates to offset the list prices of drugs and (ii) to design and manage formularies and formulary compliance programs.  Rather than negotiate with manufacturers on their own, a number of health plans hire PBMs to negotiate collectively on their behalf ....

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