Michigan Pharmacists Association, along 3 Axis Advisors, released a report to shine a light on the role of Pharmacy Benefit Managers (PBMs) in Michigan, specifically the extent to which these companies have unfairly profited off of pharmacists, patients and taxpayers.
The study collected data from 451 community pharmacies across Michigan, representing nearly 20% of the 2,356 retail/community pharmacies in the state to analyze PBM spread pricing – the difference between what a PBM pays a pharmacy for a medication and what it charges Michigan Medicaid. The spread pricing analysis is based on nearly two million prescriptions dispensed for generic drugs by pharmacies to Michigan Medicaid managed care beneficiaries over a two-year period.
As Michigan Pharmacists Association CEO Larry Wagenknecht says, “This report demonstrates the dire need for reforms in our health care system.”
“Based on this data, we can infer that our state has spent at least $64 million more than necessary on prescriptions. This money was funneled back to PBMs, rather than helping poor, underserved, or disabled patients receiving Medicaid managed care. We need to address the spread pricing problem and ensure that these large, Fortune 500 companies can no longer take advantage of pharmacists and patients who depend on a fair system.”
To read the full press release, click here.
To read report, click here.