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Writing Prompt 3 Essay Example

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Writing Prompt 3

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A Pharmacy Benefits Management Company (PBMC) can be said to be the third-party which is responsible in administration of prescription and drug programs. Its primary responsible is contracting with pharmacies; maintain formulary, discount negotiation, drug rebate with manufacturers and also making and processing prescription drug claims. The company works with self insured companies and the government programs aiming to reduce pharmacy expenditure while improving health care outcomes. However, the pharmacy benefit company is now becoming an administrator and negotiator which is an intermediary between the players and everyone who is in health- care system (Miller, 2000).Since the pharmacy benefits management company is responsible in making prescription of drug, it has led to completion in the medicine world; this has made the company the bane of community pharmacies existence. PBC have made contracts with community pharmacies where a number of PBCs are primary competitors through their mail-order pharmacies, this have made to rise of conflict of interests that allows PBCs ability alter the rules for their advantages (Gold, 2003).The act of making special favors on some drug brand names over others, which can be said to be side deals that with PBCs often collecting payments without sharing this information to the public and audit firms. The PBC have moved a notch higher where they have their own manufacturers and repackage generic drugs and control the product average price. The PBC want to enjoy a monopoly where they shall be the only determinants of the drug price. This has made the fate of patients in the hands of profit driven PBC rather that in the hands of professional’s doctors and pharmacists. Cost for drugs has been significantly added as the PBC is only interested in profit making it raise the drug cost at will (David, 2010).In the drug market, which can be said to be an oligopoly type of market, where few sellers and many buyers in a more competitive market the determinant and price fixers are the sellers and manufacturers. The PBCs dictates every aspect of drug delivery chain this includes what drugs are covered under the health plan, how much the pharmacies can charge the quantity patients can purchase and also where the drugs can be acquired. This makes it able to increase the drug price where notable is that the United States has the highest

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Reference

David, S. (2010), The Case for Smarter Medicine: How Evidence-Based Protocols Can Revolutionize Healthcare, Retrieved on 17th march 2014 from <athttp://medco.mediaroom.com/index.php?s=17884

Gold, M. 2003. Can Managed Care and Competition Control Medicare Costs? Health Affairs. p.W3- 176-188.

Hixon T. 2012. Why Are U.S. Health Care Costs So High? Retrieved from http://www.forbes.com/sites/toddhixon/2012/03/01/why-are-u-s-health-care-costs-so-high/ on 17th march 2014

Miller, T. E. and Horowitz, C. R., 2000. Disclosing Doctors Incentive: Will Consumers Understand And Value the Information?" Health Affairs.19:4. p.149-55.

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