A recent analysis by Bloomberg suggests pharmacy benefit managers received a 32 percent markup on generic drug prescriptions in New York over what independent pharmacies were paid.
“In 2017, PBMs paid independent New York pharmacies in the analysis an average of $10.85 per generic-drug prescription,” a Bloomberg report states. “Private health plans that provide state-financed Medicaid coverage reported a cost of $14.34 per prescription.”
Eric Pachman, former pharmaceutical executive and 3 Axis Advisors consultant, says PBMs “are taking an increasing share of the margin on generic drugs” in New York. Pachman conducted the analysis.
According to the report, the Pharmaceutical Care Management Association (PCMA) says New York’s Medicaid program overpays independent pharmacies.
“New York’s Medicaid program wastes millions every year by overpaying drugstores,” PCMA spokesperson Charles Cote said. “By defending wasteful spending in a program that’s clearly in trouble, New York’s special interest drugstore lobby wants to rearrange deck chairs on the Titanic without offering ways to keep Medicaid afloat.”