The Paragon Health Institute, one of the preeminent health care think tanks in America, recently shared their priorities for Congress in the lame duck session, and proposals policymakers should avoid. In their recommendations, the Paragon Health Institute urged Congress to oppose Big Pharma’s “delinking” scheme:

“Pharmacy benefit managers (PBMs) negotiate rebates on drugs for insurers and receive as compensation a percentage of the overall rebate. These rebates reduce both total drug spending and premiums. Congress is considering eliminating this practice in Medicare Part D by “delinking” PBM revenue from the rebate in Part D plans. We recommend against delinking PBM revenue from rebates, because it is key incentive for PBMs to negotiate the best price on drugs possible.”

Read the Paragon Health Institute’s lame duck recommendations for Congress HERE.

Big Pharma has been pushing Congress, including through a new seven-figure ad campaign, to get Congress to pass this so-called “delinking” scheme in the lame duck session. Their plan would take away the market-based incentives that encourage PBMs to secure greater rebate savings, leading to increased premiums for seniors in the Medicare Part D program of a staggering $13 billion annually, according to University of Chicago Professor of Economics Casey Mulligan, Ph.D.

In other words, their plan is a Big Pharma money grab from America’s seniors.

In his research, Dr. Mulligan also pointed out why exactly performance-based incentives matter: “Incentives matter for PBMs just as they do for other market participants. A financial reward for greater rebates and discounts results in greater rebates and discounts.” The government should not be able to dictate the winners and losers of any market, let alone the prescription drug marketplace to hand drug companies a massive bailout.

To no surprise, this policy would also hand Big Pharma $10 billion if enacted in Medicare alone.

Policies that undermine market forces, such as “delinking” and other government mandates targeting pharmacy benefit managers (PBMs), are nothing more than cash grabs from the pharmaceutical industry to pad their own pockets. Which is why it comes to no surprise that “delinking” originated from Big Pharma themselves.

See more about the origins of “delinking” HERE.

Learn more about Big Pharma’s “delinking” scheme that would saddle patients and taxpayers with higher health care costs to bail out big drug companies HERE.