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class="blog-content-header__title field-contenttitle">PhRMA launches new ad in campaign exposing ways middlemen drive up costs</h1><p class="blog-content-header__subtitle d-none field-description">PBMs and health insurers decide what medicines you can get, and they set the price you pay at the pharmacy. At the same time, over half of every dollar spent on medicines goes to these middlemen and others.</p><div class="blog-content-header__blog-info"><div class="blog-content-header__author-image"><div class="field-authorimage"><img src="/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/People/Alex-Schriver.jpg?h=500&w=500&hash=E310834E8D2428D655FAB07A08F6CF8F" alt="Alex Schriver bio picture" width="500" height="500" data-variantitemid="{E395E1D1-32F7-4557-8FF1-510224DDD113}" data-variantfieldname="AuthorImage" style="margin: 0px 0px" /></div></div><span><a class="blog-content-header__author-link" href="/blog/author/Alex Schriver#refresh-search_e=0&refresh-search_authoritem=e395e1d132f745578ff1510224ddd113">Alex Schriver</a></span><span class="blog-content-header__publish-date field-pagepublishdate">July 17, 2024</span></div><div class="summary-image"><div class="summary-image__img"><div class="w-100 m-0"><img src="/-/media/Screenshot-2024-07-17-at-64922-AM.png?w=600&hash=E6DE87BD62520949AF4A64A8BD9A59CC" sizes="(min-width: 1200px) 1660px, (min-width: 768px) 1280px, 600px" srcset="/-/media/Screenshot-2024-07-17-at-64922-AM.png?w=1660&hash=3AEBDCFC62E1EE9588ADA361652A225F 1660w,/-/media/Screenshot-2024-07-17-at-64922-AM.png?w=+1280&hash=1C0D22BF05F9816D22D29EF15D8DF50A 1280w,/-/media/Screenshot-2024-07-17-at-64922-AM.png?w=+600&hash=ABF81C94D6C19F4C20C0DE2B15050710 600w"></img></div><p class="summary-image__caption field-contenttitle">PhRMA launches new ad in campaign exposing ways middlemen drive up costs</p></div></div><div class="blog-social-share d-flex flex-row align-items-center"><h3 class="blog-social-share__title mb-0">Share This</h3><div><ul class="blog-social-share__link-list list-unstyled p-0 mb-0 d-flex flex-row align-items-center"> <li class="blog-social-share__list-item mb-0"> <a class="blog-social-share__icon blog-social-share__icon--facebook d-inline-flex align-items-center justify-content-center" aria-label="Share this on facebook" data-share-platform="facebook" href="http://#facebook" target="_blank"><i class="icon icon-facebook"></i></a> </li> <li class="blog-social-share__list-item mb-0"> <a class="blog-social-share__icon blog-social-share__icon--twitter d-inline-flex align-items-center justify-content-center" aria-label="Share this on twitter" data-share-platform="twitter" href="http://#twitter" target="_blank"><img src='data:image/svg+xml;base64,PCEtLSBHZW5lcmF0ZWQgYnkgSWNvTW9vbi5pbyAtLT4KPHN2ZyB2ZXJzaW9uPSIxLjEiIHhtbG5zPSJodHRwOi8vd3d3LnczLm9yZy8yMDAwL3N2ZyIgd2lkdGg9IjMyIiBoZWlnaHQ9IjMyIiB2aWV3Qm94PSIwIDAgMzIgMzIiPgo8cGF0aCBmaWxsPSIjMDA3ZmFkIiBkPSJNMjQuMzI1IDNoNC40MTFsLTkuNjM2IDExLjAxMyAxMS4zMzYgMTQuOTg3aC04Ljg3NmwtNi45NTItOS4wODktNy45NTUgOS4wODloLTQuNDEzbDEwLjMwNy0xMS43OC0xMC44NzUtMTQuMjJoOS4xMDFsNi4yODQgOC4zMDh6TTIyLjc3NyAyNi4zNmgyLjQ0NGwtMTUuNzc2LTIwLjg1OWgtMi42MjN6Ij48L3BhdGg+Cjwvc3ZnPgoK' style="height: 18px; width: 18px;"/> </a> </li> <li class="blog-social-share__list-item mb-0"> <a class="blog-social-share__icon blog-social-share__icon--email d-inline-flex align-items-center justify-content-center" aria-label="Share this on email" data-share-platform="email" href="mailto:?Subject=PhRMA Org&amp;body=PhRMA Org%0Ahttps://phrma.org/%0A" target="_blank"><i class="icon icon-mail-envelope-closed"></i></a> </li> <li class="blog-social-share__list-item mb-0"> <a class="blog-social-share__icon blog-social-share__icon--linkedin d-inline-flex align-items-center justify-content-center" aria-label="Share this on linkedin" data-share-platform="linkedin" href="http://#linkedin" target="_blank"><i class="icon icon-linkedin2"></i></a> </li> </ul></div></div> </div> </div> </div> </div> <div class="component container blog-content-body pb-0 pt-0 blog-content-container blog-content-body pb-0 "> <div class="component-content"> <div class="component promo"> <div class="component-content"> <p>You’ve probably heard by now that middlemen are driving medicine costs, but you don’t know the half of it.</p> <p>That’s the theme of new advertisements launched today by PhRMA in our ongoing campaign highlighting the ways middlemen, like pharmacy benefit managers (PBMs) and health insurance companies, use medicines as a profit center while driving up costs for patients and the health care system.</p> <div class="fullwidth-video"> <div class="hs-embed-wrapper hs-fullwidth-embed" style="position: relative; max-width: 46.88rem; margin: auto;" data-service="youtube" data-responsive="true"> <div class="hs-embed-content-wrapper" style="position: relative; max-width: 100%; padding-bottom: 56.5%; margin: 0;"> <div style="position: absolute; top: 0; right: 0; width: 100%; height: 100%;"><iframe style="position: absolute; top: 0; right: 0; width: 100%; height: 100%;" src="https://www.youtube.com/embed/XvGM3fm52VA"></iframe></div> </div> </div> </div> <p>PBMs and health insurers decide what medicines you can get, and they set the price you pay at the pharmacy. At the same time, over half of every dollar spent on medicines goes to these middlemen and others.</p> <p>To make matters worse, PBMs and health insurers are owned by the same massive health care conglomerates and also own pharmacies. And, they are <a href="https://www.washingtonpost.com/health/2024/04/30/unitedhealth-congress-review-cyberattack/" target="_blank" rel="noopener">further consolidating</a> their control over the health care system, allowing them to extract more profits.</p> <p>Our new ad focuses on these themes using the now-prominent “middleman” as a PBM and a health insurance company. The middlemen decide to charge a patient more for their medicine at the pharmacy and then take their cut of the profits.</p> <p>Today’s announcement falls on the heels of groundbreaking investigations from the <a href="https://phrma.org/Blog/ICYMI-The-Opaque-Industry-Secretly-Inflating-Prices-for-Prescription-Drugs" target="_blank" rel="noopener">New York Times</a>, <a href="https://phrma.org/Blog/Hidden-markups-at-mail-order-pharmacies-increase-costs-for-employers" target="_blank" rel="noopener">Wall Street Journal</a> and <a href="https://phrma.org/Blog/FTC-report-confirms-PBMs-profit-at-the-expense-of-patients" target="_blank" rel="noopener">Federal Trade Commission</a> detailing how the PBM industry is focused on profits at the expense of patients, community pharmacies, employers and others.</p> <p>This effort also makes clear: policymakers can’t address medicine costs if they don’t take on the middlemen. So, it shouldn’t be a surprise that a new <a href="https://phrma.org/Blog/New-50-state-poll-Americans-want-to-hold-health-insurers-and-PBMs-accountable" target="_blank" rel="noopener">Morning Consult/PhRMA poll</a> shows the vast majority of Americans are not only concerned about the harmful practices from PBMs and health insurers, they want policymakers to act.</p> <p>In fact:</p> <ul> <li>82% of Americans are concerned that over half of every dollar spent on medicines goes to PBMs, payers and other stakeholders, not the companies who made them.</li> <li>81% are concerned that PBMs influence what medicines patients get and control what patients pay at the pharmacy.</li> <li>84% agree policymakers should focus on cracking down on abusive practices by health insurance companies and other middlemen that make it harder to get the care they need. </li> <li>80% of Americans favor requiring health insurance companies and their middlemen to pass the rebates and discounts they receive directly to patients at the pharmacy counter, so no patient has to pay more for their prescription medicines than their insurance company.</li> <li>72% favor requiring middlemen to be paid based on the services they provide instead of the price of a medicine, fixing the potential incentive for middlemen to favor high-priced medicines.</li> </ul> <p>Our campaign adds to the growing chorus of voices, including pharmacies, providers, employers, AARP and others, calling on policymakers to help patients by taking on the middlemen.</p> <p>That starts with ensuring savings are passed on to patients, requiring PBMs to be paid a flat fee not based on a medicine’s list price and holding PBMs accountable for their abusive practices that put medicines out of reach for patients.   </p> </div> </div> </div> </div> <div class="component container blog-content-container blog-content-body pb-0 "> <div class="component-content" > <div class="component pb-4"> <div class="component-content"> <div><h3 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class="field-teaserimage"><img src="/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Doctor-speaking-with-patient-with-child-635.jpg?w=215&hash=CE356EA266153D817E1A09F5B6105301" alt="Doctor speaking with patient with child" sizes="(min-width: 1025px) 550px, (min-width: 992px) 390px, (min-width: 768px) 375px, (min-width: 576px) 290px, 215px" srcset="/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Doctor-speaking-with-patient-with-child-635.jpg?w=550&hash=634ED7E2DAEE7556644D084A3BC1B67B 550w,/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Doctor-speaking-with-patient-with-child-635.jpg?w=+390&hash=EEF8468CB38E101964F094F7F59E520C 390w,/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Doctor-speaking-with-patient-with-child-635.jpg?w=+375&hash=797A7F2CADFFF57D3AE6A0E34C024A44 375w,/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Doctor-speaking-with-patient-with-child-635.jpg?w=+290&hash=682EACF2933A928758E30484D6B55D2E 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srcset="/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Campaign-exposing-ways-middlemen-drive-up-costs.png?w=550&hash=7F68E2C6410F2455B5E247F6EE3FAA0A 550w,/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Campaign-exposing-ways-middlemen-drive-up-costs.png?w=+390&hash=093718AFD3DEF40ACBC300BC54344B16 390w,/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Campaign-exposing-ways-middlemen-drive-up-costs.png?w=+375&hash=3C12930C486B3E5C4414153A0C705B56 375w,/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Campaign-exposing-ways-middlemen-drive-up-costs.png?w=+290&hash=4005E847FE9FD4FAA5B0E1116B6094F0 290w,/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Refresh/Blog-Image/Campaign-exposing-ways-middlemen-drive-up-costs.png?w=+215&hash=850E7C2EEB10BF590873D81B20A92EAB 215w"></img></div></div><h4 class="field-contenttitle">PhRMA launches new ad in campaign exposing ways middlemen drive up costs</h4></a> </div> </div> </div></div></div></div> </div> </div> <div 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