WASHINGTON, D.C. (December 15, 2021) – A new report released by Milliman and commissioned by the Pharmaceutical Research and Manufacturers of America (PhRMA) finds that rebates, discounts and other payments from biopharmaceutical companies to pharmacy benefit managers (PBMs), insurers, the government and others, lowered the cost of the most commonly used insulins by 84% on average in 2021. The report further finds that the average net cost of the most commonly used insulins is 20% lower today than in 2007.
Unfortunately, it doesn’t feel that way for many patients. According to the report, “the way pharmaceutical reimbursement works in the U.S., the gap between gross and net prices for insulins does not result in direct savings for patients at the pharmacy counter."
PhRMA President and CEO Stephen J. Ubl said, “This report is further proof that the rebates and discounts paid by biopharmaceutical companies significantly lower the costs of medicines. But too often, these savings are not shared with patients. Unfortunately, the current drug pricing bill fails to take a holistic approach to addressing a system that drives affordability challenges for patients. By taking steps to hold middlemen accountable, Congress can help fix a broken system and lower patient costs at the pharmacy counter.”
The report also found:
Learn more at PhRMA.org/cost.
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier and more productive lives. Over the last decade, PhRMA member companies have more than doubled their annual investment in the search for new treatments and cures, including nearly $101 billion in 2022 alone.