SAN FRANCISCO–(BUSINESS WIRE)–SmithRx, a San Francisco based technology company and Pharmacy Benefit
Manager (PBM), today released the company’s public comment on the HHS
proposed rule to end manufacturer-to-PBM rebates in Medicare and
Medicaid which have been aided by a safe-harbor protection exempting
these rebate payments from federal rules prohibiting kickbacks.
In the public comment, SmithRx commends HHS for proposing an end to
protection for manufacturer-to-PBM rebates in Medicare and Medicaid and
calls for additional reforms, including adopting new transparency
requirements and avoiding new safe harbor protections for point-of-sale
rebates and manufacturer-to-PBM service fees. Rather than shifting the
recipient of rebates, HHS should oppose rebates altogether given the
obfuscation and lack of transparency that is implicit with any such
system. SmithRx believes that while the goal of this point-of-sale price
reduction is an admirable one, the only way to generate true price
competition is to make it clear to all parties how much drugs really
cost.
In addition to the HHS proposed rule, the Senate Finance Committee will
also hear from the nation’s largest PBMs at a hearing on April 9 aimed
at addressing the bipartisan concern over the rising cost of
prescription drugs.
“Senators should contemplate a world without rebates, one where list
prices are actual prices, and where PBMs compete for business based on
their ability to promote strong therapeutic outcomes and service
customers more efficiently,” says Jake Frenz, SmithRx founder and CEO.
SmithRx’s public comment details how a world without pharmaceutical
rebates might function to align more closely with the needs of patients.
PBMs could leverage their power to ensure only drugs with a reasonable
balance between cost and therapeutic outcome are given favorable
treatment on their approved drug plans and manufacturers would finally
be forced to revisit their high list prices.
The full public comment can be viewed here.
About SmithRx
SmithRx is a start-up pharmacy benefit management (PBM) company based
in San Francisco. Over the past three-plus years, SmithRx has succeeded
in bringing an alternative model to the PBM space. The SmithRx model
couples technological innovation and efficiencies with a transparent and
auditable pricing program that passes through all manufacturer rebates
to plan sponsors. SmithRx fulfills the role of PBM without tying its
revenue to rebates or other payments from manufacturers. For more
information visit smithrx.com.
Contacts
SmithRx – Justus Meyer
pr@smithrx.com