Pharmacists Claim Biden's Limit on Drug Industry Middlemen Backfires
The Biden administration's attempt to impose limits on pharmacy benefit managers (PBMs), who negotiate drug prices on behalf of the pharmaceutical industry, is backfiring and causing problems for independent drugstores. A new rule set to take effect in January requires PBMs to take most of their "performance fees" at the time prescriptions are filled, instead of weeks or months later. However, in response, PBMs are demanding that pharmacies accept new contracts with significant payment cuts for dispensing medicines. If pharmacies refuse, they risk losing Medicare customers to the large PBM conglomerates. The rule change was intended to help Medicare patients, but it has resulted in higher prescription costs and financial difficulties for independent pharmacies.
