Input Stories

Manufacturers and manufacturing workers are struggling to pay for health care—and pharmacy benefit managers are a major culprit, the NAM says in a new seven-figure ad campaign out this week. 
 
What’s going on: PBMs “drive up the cost of medicines by pocketing massive prescription drug discounts meant for manufacturing workers, families and retirees who rely on Medicare,” the new ad says. 

• In fact, rising health care costs are the top business challenge cited by small manufacturers, according to the results of the NAM’s most recent Manufacturers’ Outlook Survey.  
• The NAM has long advocated for congressional reform of PBMs, which operate with little federal oversight.  

What should be done: The NAM is calling for comprehensive PBM reform during the year-end lame-duck session of Congress. Reforms in both the commercial insurance market (where manufacturers offer their workers coverage) and government programs, such as Medicare and Medicaid, should include:   

• Greater transparency into PBMs’ business models; 
• Rebate passthrough, to ensure that savings are passed on to manufacturers and manufacturing workers rather than going into PBMs’ pockets; and 
• Delinking PBM compensation from medications’ list prices, so there is no incentive for PBMs to exert upward pressure on drug costs. 

The last word: “Manufacturers and manufacturing workers need Congress to act now,” said NAM Vice President of Domestic Policy Charles Crain. “Rising health care costs are small manufacturers’ number-one business concern, and Congress has the opportunity to do something about it: reform PBMs and reduce health care costs for manufacturing families.”

NAM in the news: POLITICO Influence (subscription) and The Hill highlighted the new campaign.