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A new study by GlobalData looked at brand oral antidiabetic drugs (OADs) and found that sharing negotiated rebates with patients in commercial health plans at the pharmacy counter can help lower costs, improve adherence and reduce health disparities. This common-sense solution can help us build a more affordable and equitable health care system and help avoid nearly 700 premature deaths each year.

Middlemen like insurers and pharmacy benefit managers (PBMs) negotiate discounts for medicines, but they don’t always share these savings with patients directly at the pharmacy counter. Middlemen say they use rebates and discounts to lower monthly premiums, but sick patients shouldn’t subsidize costs for the healthy.

By passing through rebates and discounts for these diabetes medicines at the pharmacy, the report showed patients in the commercial market could save an average of more than $500 a year. What’s more, it could help patients take their medicines as prescribed, improving adherence by 9%, on average. 

Not only would this lead to better health outcomes and lower costs, but this policy could also improve health equity. Diabetes has a disproportionate impact on communities of color. This study shows that Black and Hispanic Americans could experience the greatest improvements in adherence with this policy. These communities would also see the largest reductions in their overall health care costs, with Black and Hispanic patients incurring 6% and 9% less in combined medical and medicine spending, respectively.

The health care system overall also stands to benefit. Over 10 years, passing through rebates could reduce overall health care spending by $8 billion, including a $1.5 billion reduction in patient out-of-pocket costs.

Patients, especially those managing multiple conditions or with serious conditions like diabetes, support changes in health care coverage that lower out-of-pocket costs. It’s time for Congress to pass patient-centered solutions like sharing the savings. Doing so can improve health equity and patient affordability.

To learn more about policies that can help improve the health care system, visit www.phrma.org/BetterWay.

Katie Koziara

Katie Koziara is Senior Director of public affairs at PhRMA focusing on the organization’s executive visibility work and media relations strategy. She previously ran the social media strategy for a D.C.-based non-profit working on federal management and leadership issues. Katie earned her B.A. in Public Policy from the University of Michigan’s Ford School and is currently earning her M.A. in Fiction Writing from Johns Hopkins University.

Katie Koziara

Reimagining patient access through meaningful policy reform

November 5, 2024

New PES survey: Out-of-pocket costs lead key health care priorities ahead of the November election

October 30, 2024

Recent events highlight progress on health equity

October 22, 2024

ICYMI: PhRMA’s 4th Annual Pathways to Success: Virtual STEM Career Expo

October 21, 2024

Hispanic Heritage Month: Fighting for Hispanic patients

October 7, 2024

PhRMA awards grants to 2024 Annual Pathways to Success: Virtual STEM Career Expo Partners

September 20, 2024

Don’t put the government between patients and their medicines

August 7, 2024

The IRA could lead to higher out-of-pocket costs for 3.5 million Medicare patients in 2026

June 25, 2024

How government price setting fails to address systemic health care inequities

May 24, 2024

Women’s Health Month: A conversation with Sage

May 23, 2024

Ongoing federal probes shed light on PBM and insurer practices

May 20, 2024

Critics repeat same, misleading narrative on potential “costs” of new medicines

May 7, 2024

WTAS: The consequences of consolidation and vertical integration

May 6, 2024

Championing cancer equity: Our drive for healthier AANHPI communities

May 1, 2024

New analysis: Accelerated approval pathway is changing lives in underserved communities

April 30, 2024

Insurance data: PBM reform has no material impact on premiums

April 24, 2024

What recent rhetoric on the cost of diabetes and anti-obesity medicines gets wrong

April 9, 2024

3 Takeaways from POLITICO’s Health Care Summit

April 3, 2024

Four years later, Maryland board still hasn’t delivered for patients

February 12, 2024

Setting the Record Straight: Comparing U.S. drug prices to those in foreign countries hurts patients

February 7, 2024

When it comes to the future of innovation, the ball is in policymakers’ court

January 22, 2024

PhRMA provides grant funding to support the Morehouse School of Medicine Satcher Health Leadership Institute’s Health Equity Tra

December 7, 2023

ICYMI: When middlemen get in the way, it’s the patients who lose

December 5, 2023

ICYMI: WSJ — Same Drug, Two Prices: Why the Higher Price Prevails

November 15, 2023

One year to Election Day: Four voter priorities to watch

November 6, 2023

New social determinants of health simulation explores structural barriers patients face accessing and affording medicines

October 27, 2023

ICYMI: Scott LaGanga and Matt Salo deliver a State of the Industry Report

October 25, 2023

ICYMI: Government watchdog report finds patients in Medicare Part D paid billions more for medicines than insurers and PBMs

September 28, 2023

PhRMA awards grants to 2023 Annual Pathways to Success Graduate Summit Partners

September 25, 2023

Medicare Prescription Payment Plan will benefit patients if implemented correctly

September 21, 2023

New PhRMA ad exposes yet another way PBMs get between patients and their medicines

September 5, 2023

AARP’s latest misleading report

August 11, 2023

New report: Hospitals mark up medicine prices 500%

August 2, 2023

read more

August 2, 2023

Three things to know from the latest Patient Experience Survey

July 20, 2023

Key considerations as Congress works towards PAHPA reauthorization

July 12, 2023

Between hope and despair: Improving cancer outcomes

July 11, 2023

ICYMI: PBM exec admits choosing profits over patients

June 2, 2023

New calculator demonstrates how improved adherence to anti-diabetic medicines can benefit people in Medicaid

May 25, 2023

Insulin: Key Facts on Access & Affordability

May 10, 2023

4 key facts on medicine prices and spending

May 9, 2023

4 Things to know about PhRMA’s new 50-state poll

May 4, 2023

Americans want state policymakers to lower out-of-pocket costs

May 1, 2023

Three facts about health care spending

April 25, 2023

PhRMA awards grant to Emerson Diversity Health Foundation

April 19, 2023

PhRMA Otorga Beca a la “Emerson Diversity Health Foundation”

April 19, 2023

States can support access to medicine as COVID-19 Public Health Emergency ends

April 5, 2023

Arkansas puts patients first with new share the savings law

April 4, 2023

Key Trends: Patient experience data reveal how insurers and middlemen impose barriers in health care

March 29, 2023

Holding pharmacy benefit managers accountable

February 23, 2023

Stopping pharmacy benefit managers from “gaming the system”

February 22, 2023

Senate hearing to examine bipartisan reforms to rein in middlemen

February 16, 2023

Minnesota lawmakers are letting PBMs off the hook, and threatening patients’ access to medicines

January 31, 2023

ICYMI: Cancer death rate continues to decline due to treatment advances

January 25, 2023

Novel medicines approved in 2022 offer increased treatment options for patients

January 23, 2023

ICYMI: PhRMA kicks off the year at the 2023 J.P. Morgan Health Care Conference

January 19, 2023

Study finds hepatitis C cure saved Medicaid $15 billion

January 5, 2023

Using traditional HTAs to determine coverage threatens patient access to medicine

December 14, 2022

In their own words: Financial barriers exacerbate access challenges for insured Americans

December 8, 2022

Traditional HTAs keep diverse patients out of the conversation

December 7, 2022

Putting Delaware patients first: Protecting Patient Assistance Programs

November 22, 2022

New data show how insurers and middlemen shift Rx costs onto patients

November 16, 2022

Traditional HTA methods treat everyone like the “average” patient

November 7, 2022

In their own words: Insured Americans struggle to navigate complex coverage

October 26, 2022

Many seniors are paying more for Part D medicines than their insurer

October 18, 2022

New comments outline ways to protect patients from health plans and PBMs who profit from patient assistance

October 7, 2022

Busting 3 Myths About Copay Coupons

October 5, 2022

Mental Illness Awareness Week – A time for reflection

October 3, 2022

A key fact the White House is reluctant to admit

September 27, 2022

A key fact the White House is reluctant to admit

September 27, 2022

Navigating the patient experience: Burdens and barriers standing between patients and their care

September 12, 2022

Making coupons count for patients at the pharmacy counter

August 25, 2022

Making coupons count for patients with HIV

August 8, 2022

The Senate’s latest price setting proposal will undermine: Our health care system

July 28, 2022

The Senate’s latest price setting proposal will undermine: Patient access to medicines

July 26, 2022

Survey Says: Prescription drug prices are not fueling inflation concerns for Americans

July 22, 2022

Putting patients first at the state level — A conversation with Mark Reisenauer, President of Astellas Pharma US

July 14, 2022

By the Numbers: Patients lose when the government sets prices

July 8, 2022

Patients win as West Virginia implements first-in-nation share the savings policy

July 8, 2022

3 things voters are concerned about when it comes to their health care coverage

July 7, 2022

Prescription drug prices are not fueling inflation

July 6, 2022

Copay assistance is a lifeline for patients. So why are insurers blocking it?

June 29, 2022

Patients support state action requiring PBMs and insurers to share savings and cap costs for medicines

June 16, 2022

You won’t fix what you don’t value: Two reasons why traditional cost-effective analyses can perpetuate health inequities

June 16, 2022

New poll shows voters sounding the alarm on health insurance companies and PBMs

June 6, 2022

Potential gene therapies bring hope to patients with sickle cell disease

June 6, 2022

PhRMA warns of the growing influence of middlemen over patient access and out-of-pocket costs for patients

May 31, 2022

Report finds PBMs are increasingly restricting patient access to medicines

May 25, 2022

ICYMI: PhRMA CEO Stephen J. Ubl spotlights lessons learned during COVID-19

May 13, 2022

ICYMI: PhRMA COO Lori Reilly spotlights efforts to improve health care in 2022 and beyond

May 9, 2022

Annual projections from NHE compared to actual health care spending

May 5, 2022

Study finds insurance barriers disproportionately burden patients with chronic illness

May 4, 2022

Stephanie Dyson of BMS on reducing health disparities

April 27, 2022

What’s really happening when it comes to prescription drug costs

April 27, 2022

5 public opinion polling trends to watch

April 22, 2022

Analysis: States can help patients save nearly $1,000 annually on their medicines

April 21, 2022

New analysis confirms hospitals markup prices for oncology therapies

April 21, 2022

How standardized plans can improve patients’ access to medicines

April 18, 2022

The patient experience: Uncovering the barriers to care for insured Americans

March 28, 2022

Correcting the record: Putting medicine costs and spending in context

March 24, 2022

Guest Post: If we truly want to cure complex diseases, politicians should reject price setting

March 14, 2022

Veterans Affairs 101: Three charts show how the VA system differs from Medicare

March 11, 2022

If drug prices are growing below the rate of inflation, why are patients still feeling the sting at the pharmacy?

March 8, 2022

The patient experience: Insurance barriers continue to impede access to health care, especially among the country’s underserved

February 28, 2022

Government price setting leaves behind families counting on new medicines

February 23, 2022

340B 101: Three charts show the program maximizes hospitals’ bottom line with little consideration for patients

February 8, 2022

Medicaid 101: Three charts on access and spending

February 3, 2022

Government price setting won’t stop insurers from shifting costs to patients

February 2, 2022

Research and development continues long after a medicine is initially approved

February 1, 2022

New comments outline ways to counteract cost-shifting insurance trends

January 28, 2022

Patients need to pay less for their medicines. States can help.

January 26, 2022

It’s a new year, but sadly Congress is still pursuing flawed price setting policies

January 25, 2022

New poll of all 50 states and 435 Congressional Districts shows perils of so-called Medicare “negotiation”

January 25, 2022

CBO reaffirms our innovation ecosystem leads to improved lives, long-term savings

January 21, 2022

New study finds more than half of brand medicine spending goes to the supply chain and others

January 7, 2022

New NHE data show the true picture of health care spending

December 22, 2021

Making medicines more affordable: Making insurance work like insurance

December 8, 2021

3 things to know about the importance of post-approval research and development

December 6, 2021

Guest post: Congress should not put future innovation at risk

November 29, 2021

Insurance design barriers can impact patient adherence and can lead to poor health outcomes

November 23, 2021

What is missing in the current drug pricing plan

November 23, 2021

ICYMI: PhRMA CEO speaks at STAT Summit about government price setting

November 19, 2021

Making medicines more affordable: Sharing savings at the pharmacy counter

November 19, 2021

Three things to know about so-called Medicare negotiation polling

November 18, 2021

In the current health care debate, Congress has lost sight of what matters to U.S. voters

November 15, 2021

Announcing CAREs Grant Round 4

November 12, 2021

Announcing CAREs Grant Round 4

November 12, 2021

Making Medicines More Affordable: Making coupons count

November 5, 2021

What they are saying: Government price setting for medicines is not the answer

November 4, 2021

Four things to know from IQVIAs latest report

October 29, 2021

The patient experience: Insurance design hurdles lead to access issues for too many Americans

October 28, 2021

CMS finds medication adherence saved Medicare up to 46.6B in avoided health care costs between 2013 and 2018

October 19, 2021

The patient experience: Out-of-pocket costs are driving patients affordability and access challenges

October 19, 2021

ICYMI: New study confirms policies like H.R. 3 could significantly reduce drug development

October 18, 2021

New poll shows Americans reject Medicare negotiation once they learn more about the policy

October 15, 2021

To drive up profits, hospitals continue unnecessary medicine mark-ups, burdening patients, employers and health care system

October 14, 2021

What is Kaiser Family Foundation up to?

October 12, 2021

New report shows 3 in 10 Americans that have insurance still face a financial barrier to care

October 7, 2021

Guest Series: PhRMA talks racial and health equity with Lauren Powell, VP US Health Equity and Community Wellness, Takeda

September 27, 2021

Industry leaders discuss the impact of the drug pricing debate

September 23, 2021

Five reasons tying VA prices to Medicare Part D misses the mark

September 22, 2021

America’s biopharmaceutical companies to Congress: Government “negotiation” is the wrong approach

September 15, 2021

ICYMI: Event spotlights how we can make Medicare work better for patients

August 4, 2021

The future of the rebate rule: Will policymakers stand with patients?

August 2, 2021

Celebrating Medicare’s 56th anniversary

July 30, 2021

Recognizing Hepatitis R&D on World Hepatitis Day

July 28, 2021

3 factors impacting medication adherence for patients with diabetes

July 20, 2021

PhRMA awards $75,000 to fund initiatives to reduce health inequities

July 1, 2021

Watch: Building trust and enhancing clinical trial diversity

June 24, 2021

More than 800 medicines are in development for diseases that disproportionately affect racial and ethnic communities

June 22, 2021

PhRMA hosts first stakeholder workshop on clinical trial diversity

June 11, 2021

New reports shed light on key facts about medicines and affordability

June 8, 2021

Out-of-pocket trends in Medicare Part D show rising costs for seniors

May 24, 2021

How strengthening the biosimilar marketplace benefits patients

May 18, 2021

Study finds nearly half of payers believe innovative contracts can lead to lower patient out-of-pocket costs

May 17, 2021

New report demonstrates development of new medicines relies on private sector expertise and investment

May 10, 2021

PhRMA CAREs Grant request for proposals: Addressing inequities in access to COVID-19 testing, therapeutics and vaccines

May 6, 2021

New data from insurers show detriments of copay accumulator adjustment programs

April 28, 2021

West Virginia becomes the first state to lower patient costs by sharing the savings

April 20, 2021

PhRMA member companies share how they are improving clinical trial diversity

April 14, 2021

Nearly 40% of commercially insured patients face half their annual out-of-pocket expenses from just one health care encounter

March 2, 2021

Top five issues voters want addressed in the administration’s first 100 days

February 18, 2021

Insurers shift medicine costs to patients with severe chronic illnesses

February 1, 2021

Guest post: PhRMA talks racial and health equity with Stephanie Dyson, Head of Office at Biogen

January 28, 2021

The latest misleading “poll” on drug pricing

January 28, 2021

Election insights: Common ground areas to address Americans’ health care concerns

January 26, 2021

New insulin report highlights how incentives benefit middlemen, harm patients

January 22, 2021

Key facts: The final rebate rule will be a positive change for patients

January 19, 2021

Paper finds gaps in health data are a barrier to health equity

January 11, 2021

New research shows hotspots of inequity relate to increased COVID-19 hospitalizations

January 8, 2021

Election insights: Voter priorities in the states

December 17, 2020

Increasing diversity at investigator sites could increase minority participation in clinical trials

December 17, 2020

Report highlights biopharmaceutical industry’s commitment to D&I

December 17, 2020

Strengthening a culture dedicated to patients and equity: A conversation with Percival Barretto-Ko, President of Astellas US

December 16, 2020

Insights from the election: Meeting voters where they are on health care

December 15, 2020

Final rebate rule represents right way to change Medicare

December 1, 2020

PhRMA CAREs Grant request for proposals: Addressing racial disparities in medication utilization and adherence

November 24, 2020

Accumulator adjustment programs lead to surprise out-of-pocket costs and nonadherence, analysis finds

November 19, 2020

Committing to diversity, equity and inclusion: A call to action for clinical trials

November 19, 2020

Just released: PhRMA members’ new clinical trial diversity principles

November 18, 2020

Deep dive: The issues that drove the 2020 vote

November 13, 2020

ICYMI: Addressing health inequities: Biopharmaceutical companies are rising to the occasion

November 2, 2020

Voters want to address the real drivers of health care costs for patients and the system

November 2, 2020

Survey found insurance premiums grew faster than inflation in 2020

October 20, 2020

Guest Post: Honoring Hispanic Heritage Month by taking action on health equity

October 12, 2020

Sharing rebates can improve access to medicines and increase health equity

September 30, 2020

Study finds middlemen excluded nearly 850 medicines from formularies this year

September 17, 2020

Recent administration actions undermine patient assistance programs

September 16, 2020

PhRMA will continue to advocate for equity within our industry

September 10, 2020

Three ways the pharmaceutical industry can positively impact health equity

September 1, 2020

Guest Post: Amgen Foundation stands for equal opportunities in STEM learning

August 24, 2020

Systemic racism is as real as any disease, and our industry is not immune

August 20, 2020

Manufacturer cost-sharing assistance programs can save chronically ill patients hundreds to thousands of dollars annually

August 19, 2020

Commercial health plans have increased patients’ out-of-pocket costs by over 50% in some therapeutic areas

August 12, 2020

Commercial health plans transition from copays to coinsurance and deductibles has increased patient out-of-pocket costs

August 6, 2020

Four things to know about the IQVIA “Medicine Spending and Affordability in the U.S.” report

August 5, 2020

New data show commercially insured patients face increasingly high cost sharing for brand medicines

July 30, 2020

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