Rising Health Insurance Trend Requires Rx Rebate Reform

(SACRAMENTO, CA) – Le Ondra Clark Harvey, Executive Director of the California Access Coalition, issued the following statement today in response to the health care industry’s ongoing shift to high-deductible health plans:

“Rebates were originally designed to lower costs for patients. Now, they’re used as leverage in determining where a drug is placed on a health plan’s formulary, with the negotiated savings going to health plans and Pharmacy Benefit Managers (PBMs) – not patients as intended. Making matters worse, those hardest hit by high out-of-pocket costs at the pharmacy counter due to the broken prescription drug rebate system are vulnerable Californians with high-deductible health plans.

Over the years, we’ve seen a shift by insurance companies to offer more high-deductible health plans because they save them money, not because they’re better for patients. We estimate nearly 2.1 million Californians have high-deductible health plans, including the 30% of Californians insured on bronze Covered California plans. These Californians are feeling the negative impacts of the industry’s cost-shifting: higher out-of-pocket drug costs, lower medication adherence rates, and higher prescription abandonment rates.

The current rebate system is flawed, lacks transparency, and does nothing to reduce costs for patients. AB 933 (Daly) will ensure 90% of all prescription drug rebates are received by patients at the pharmacy counter.”

About California Access Coalition
The California Access Coalition (CAC) is a network of local and state behavioral health organizations, patient advocacy groups, and pharmaceutical companies that advocate to eliminate barriers that keep Californians from accessing medication and behavioral health treatment. Follow CAC on Twitter and learn more by visiting www.californiaaccesscoalition.org.