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