Pharmacy Benefit Management is an Integral Part of the Medicare System
Pharmaceutical drug prices are rising and contribute significantly
to total health expenditure worldwide. Since 2014, prescription drug prices
have increased by 33%. In 2020, global spending on prescription drugs is
expected to be US$ 1.3 trillion. Increasing drug prices and consumer spending
on prescription drugs are increasing the demand for the pharmacy benefit
management system. The system is operated by third-party administrators who act
as a link between drug manufacturers, insurance providers, and pharmacists. The
system assists in reducing drug prices by negotiating with drug manufacturers
and retail pharmacies.
Those who are enrolled in various health schemes and those without
insurance can get the benefit of the pharmacy benefit management system. The
system provides medicines at a lower price than those available at retail
pharmacies. To reduce rising health expenses, Japan planned to start reviewing
drug prices every year instead of every two years. The move reflects growing
resistance to rising drug prices worldwide. In Europe, different approaches
have been implemented to regulate drug prices. In Germany, manufacturers can
freely set the prices of newly developed drugs during their first year on the
market. Benefit assessments are done during this year and then used in price
negotiations between manufacturers and the country's representatives of
statutory health insurers.
Moreover, Mexico has also implemented several approaches to
regulate the pharmaceutical sector. The government has implemented an
information platform, price negotiations, and pooled procurement to improve the
affordability and availability of medicines in the country. All health-care
providers must understand and comply with the rules and regulations of the
Health Insurance Portability and Accountability Act, including those related to
the process of offering pharmacy benefit programs. Pharmacy benefit management
programs are designed to provide convenient, safe, effective, seamless benefits
for patients.
Comments
Post a Comment