Jonathan Levitt Quoted in The Wall Street Journal Article “Foot Locker, Teamsters Show Their Drug-Benefit Managers the Door”
Employers and unions say the PBMs are favoring costlier drugs over less expensive options and aren’t open about their rebates.
Employers and unions are growing increasingly frustrated with rising costs from pharmacy-benefit managers (PBMs) tasked with controlling spending on prescription drugs. In this WSJ article, reporter Melanie Evans discusses how companies like Foot Locker and the Teamsters fund are parting ways with established PBMs due to concerns about being directed towards costlier drugs, even when more affordable options are available. The lack of transparency regarding fees and revenue sources further exacerbates the issue, as some suspect PBMs are prioritizing higher-cost drugs to maximize rebates from pharmaceutical manufacturers. Jonathan Levitt, Frier Levitt’s Managing Partner was quoted in this article, saying that one of his employer clients settled an arbitration case with a PBM over how much information it should provide about the rebates it negotiates and another is now in a similar arbitration with a PBM.
Some organizations, such as Phifer and Foot Locker, have successfully reduced drug spending by switching to alternative PBMs that emphasize transparency and prioritize cost-effective options. This shift underscores challenges within the PBM sector, responsible for handling the majority of the 6.4 billion 30-day prescriptions. As the industry faces scrutiny, employers and unions are seeking more transparent and cost-effective solutions to manage rising prescription drug expenses.
Read the full article here: Foot Locker, Teamsters Show Their Drug-Benefit Managers the Door – WSJ
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