Reducing Drug Prices

Over the past decade, the cost of prescription drugs has increased three times faster than the rate of inflation. Prescription drug costs are prohibitive for many consumers and are a leading cause of ever-increasing health care coverage costs. PBGH is focused on reducing the cost of prescription drugs by addressing the underlying drivers of drug costs. We work with policymakers and stakeholders to inject more competition, transparency and value into the health care system.

The Issue

One in four Americans has trouble paying for prescription drugs and four in five believe the cost of drugs is unreasonable. Everyone agrees the system is broken.

Drug manufacturers and middlemen, such as pharmacy benefit managers (PBMs), are gaming the system for profit at the expense of employers, taxpayers and the government. They’ve created a system so complex and convoluted that only they understand it. They use their power to shut out reformers and pad their bottom line. This must end — lives depend on it. That’s why EmployersRx is pressing the U.S. Congress to act now to unrig the system.

Our Mission

Employers’ Prescription for Affordable Drugs aims to mobilize large employers to drive down prescription drug costs by advocating for public policies based on increased competition, transparency and value.

Our Principles

Market Forces
Strengthening market forces is the best way to improve efficiency and quality, but the drug market has several unique characteristics that require public policy intervention to protect consumers.

Business Responsibility
Employers should adopt value-based purchasing strategies to contain drug costs and create programs that model best practices for other companies.

Government Insurance Responsibility
Government-run insurance programs, such as Medicare, must use their bargaining power to help rein in costs for the entire drug market.

System-Wide Costs
Policies to rein in drug costs should address drivers of high drug costs across the system rather than focusing on a single group, such as Medicare, and should not simply shift costs to employers and consumers.

Transparency

Transparency is essential to containing costs since much of the drug supply chain is opaque to consumers due to complex payment arrangements and gag clauses.

Innovation
Government should incentivize innovative drug development and prevent companies from exploiting the system for profit by blocking generics and biosimilars.

Patient Protection
Patients, especially those with serious conditions, should not be faced with excessively high bills to obtain the medications they need to survive.