As a longtime advocate for innovation and free enterprise in healthcare, the Center for Innovation and Free Enterprise encourages greater competition within the Pharmacy Benefit Manager (PBM) marketplace. Recent trends of consolidation in the healthcare industry pose significant risks to both consumers and the healthcare system as a whole.
The rapid increase of mergers and acquisitions among PBMs has led to decreased competition, resulting in higher costs and limited choices for both patients and providers. This stifles innovation and hinders the development of cost-effective solutions to address the challenges facing healthcare delivery.
Further, rapid consolidation in the PBM sector places power in the hands of a few dominant players, enabling them to dictate pricing terms and exert undue influence over drug access and formulary decisions. This lack of competition not only drives up prescription drug prices but also restricts patient access to vital medications, undermining the fundamental principles of affordability and accessibility in healthcare.
In order to promote a vibrant and competitive healthcare marketplace that fosters innovation and empowers consumers, it is imperative that policymakers take proactive measures to encourage competition within the PBM industry. This includes robust antitrust enforcement, transparency measures, and policies that promote the entry of new market players.
By promoting competition and preventing excessive consolidation, we can unleash the full potential of innovation in healthcare, drive down costs, and ensure that patients receive the high-quality, affordable care they deserve. The Center for Innovation and Free Enterprise remains committed to advocating for policies that advance competition and safeguard the principles of free enterprise in healthcare.
