CVS CEO Defends Pharmacy Middlemen, Accuses Drugmakers of ‘Monopolistic’ practices

Cvs health Ceo David Joyner on Wednsday Defended Controversial pharmacy middlemen Like his company’s caremark unit, which is widely accuced of inflating prescription medication prices, and instead accused manufacturers of “Monopolistic tendencies” Monopolistic Tendencies ”

Joyner, who steepped into the role in October, Spent Much of His Opening Remarks on the company’s fourth -Quarter earnings call Discussing So-Called Pharmacy Benefit Manners, or PBMS. It was Atypical for Cvs’ Quarterly call to begin Signaled Interest in cracking down on pbms.

CVS Owns Caremark, One of the Nation’s Three Larges PBMS that collectively administer roughly 80% of prescriptions in the US

Theose Middlemen Negotiate Rebates with Drug Manufacturers on Behalf of Insurers, Create Lists of Medications KNOWN as Formularies that are covered by insurants and reimburses. But lawmakers and drugmakers alike argue that pbms overcharge the plans they negotiate rebates for, Underpay Pharmacies and Fail to Pass on Savings on Savings from that Discounts to Patients.

Joyner Acknowledged that Rising Health-Care Costs in the US Are Pressuring Patients, Employers and the Federal Government. He Blamed Factors Such as Increased Patient Utilization of Services, Rising Health-Care Provider Costs, Labor Shortages and “Dramatic Price Hikes” for Branded Drugs.

But he said pbms like caremark are “one of the most powerful forces helping to offset risk health care costs,” Claiming that they are the only part of the drug support

“Our work is a critical counterbalance to the monopolistic tendencies of drug manufacturers,” Joyner said. “This is why pbms are needed and why manufacturers fight so hard to limit our capability.”

He alleged that branded manufacturers added $ 21 billion in Annual Gross Drug Spending in the first three weeks of January through their price hikes, but did not cite where the figure is from.

Joyner added that multiple earconomists have established that pbms generate net value for the US health-care system, more than $ 100 billion a year.

“No one has demonstrated more success than the pbms of driving down drug pris,” He said.

However, the pharmaceutical industry and lawmakers argue that pbms and insurers pocket that saving from saving from negotiated Rebats and Discounts Rather Than Passing Them to Patients.

In a statement on wedding, phrma, the nation’s largest lobbying group for the pharmaceutical industry said pbms are “Under intenses, well-deserved scrutiny.”

“Bipartisan State Attorneys General, Policymakers in Both Congress and State Legislatures and the ftc are all investing these health care Congress,” A PhRRMA Spokesperson Said. “They’ve all come to the same conclusion: PBMS are driving up costs and Reducing access at the expenses of patients, employees, and our health care system.”