PhRMA Rebate Educational Campaign

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In a move to position drug companies as patient advocates against health insurers, Pharmaceutical Research and Manufacturers of America (PhRMA) has launched a “Share the Savings” campaign to educate the public about the lack of rebate pass-through for commercially insured patients with high deductibles and coinsurance. The association says that “robust negotiations between biopharmaceutical companies and health plans result in significant rebates and discounts.” However, a recent analysis commissioned by the association found that more than half of commercially insured patients’ out-of-pocket spending for brand medicines is based on the full list price, meaning that the negotiated savings are not passed on by the insurer to its enrollees. The data also show, the association says, cost sharing for nearly 20% of brand prescriptions is based on the list price.

“We need to ensure patients receive more of the benefits of price negotiations between biopharmaceutical companies and payers,” says PhRMA president Stephen Ubl. “It is a problem that more and more Americans are being asked by their insurers to pay cost sharing based on undiscounted list prices, even though insurers may be receiving significant rebates. Providing access to discounted prices at the point-of-sale could dramatically lower patients’ out-of-pocket costs.”

The campaign will use print, radio, digital, and social channel elements throughout this year. Ads and promotion will run on a variety of platforms in Washington, DC, and selected states, PhRMA says.

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