PCMA Applauds Governor Newsom's Continued Efforts to Reduce Insulin Costs

SACRAMENTO – The Pharmaceutical Care Management Association (PCMA) issued the following statement regarding Governor Gavin Newsom's announcement to manufacture generic insulin through CalRx. 

“We applaud Governor Newsom’s ongoing efforts to directly address high prescription drug costs, particularly insulin.

"Any assertion that pharmacy benefit companies are somehow to blame for rising insulin prices is just not true. Recent price cuts on insulin clearly demonstrate that drug companies have the full ability and discretion to set, increase or lower their prices. And we applaud any move to lower high drug prices, recognizing that these are the root cause of gaps in prescription drug affordability, including for insulins.

"The savings pharmacy benefit companies negotiate with drug companies are used to either lower health insurance premiums or prices at the pharmacy counter, usually a combination of both. In fact, the congressional watchdog Government Accountability Office found that 99.6 percent of the rebates pharmacy benefit companies negotiate with drug companies are used to lower patient costs. As a result, average out-of-pocket costs are declining for patients.

"PBMs have introduced programs to cap, or outright eliminate, out-of-pocket costs for insulin and have stepped up efforts to help patients living with diabetes by providing clinical support and education, which help patients maintain their insulin regimens and lead healthier lives.”

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About PCMA
The Pharmaceutical Care Management Association (PCMA) is the national association representing America’s pharmacy benefit managers (PBMs). PBMs administer prescription drug plans for more than 275 million Americans who have health insurance from a variety of sponsors including commercial health plans, self-insured employer plans, union plans, Medicare Part D plans, the Federal Employees Health Benefits Program (FEHBP), state government employee plans, managed Medicaid plans, and others.

PCMA continues to lead the effort in promoting PBMs and the proven tools they utilize, which are recognized by consumers, employers, policymakers, and others as key drivers in lowering prescription drug costs and increasing access.