3 ms·
So the manufacturer is getting paid the same amount, these “authorized generics” are just screwing over the PBMs? Or is the “negotiated” price of the brand nam
by zaroth 7y ago
So the manufacturer is getting paid the same amount, these “authorized generics” are just screwing over the PBMs?
Or is the “negotiated” price of the brand name basically equal to the list price of the first-party generic?
I am missing some piece to arrive at “this is not taking money out of the system”.
I can see how the pharma company perhaps could make out the same in the end... but is the consumer actually paying less?
One very interesting thing is that my insurance company has not tried to switch my kids’ Humalog for the equivalent sold as “Lispro” which was very curious to me, implying it doesn’t save them any money. I’m long past the out-of-pocket maximum anyway, so I pay $0 at this point in any case.
- s1artibartfast 7y agoThe authorized generics are just screwing over the PBMs who are state mandated, do nothing, middle men with profits equal to the manufacturers. Regarding you anecdote. One potential reason is that the ACA limits the profit margin of insurance to 20% percent of medical spending. This incentivises them to maximize healthcare costs. Switching to Lispro would hurt their bottom line instead of increase it. https://www.healthinsurance.org/obamacare/billions-in-aca-rebates-show-80-20-rules-impact/ https://www.healthinsurance.org/obamacare/billions-in-aca-re...