Pricing Strategies Used To Charge Employers For Prescription Drugs

Pricing Strategies Name Institutional Affiliation Pricing Strategies There is a notable rise of drug prescription in the recent past. The rise in the prescription of drugs continues to effect an upward trend, which is obviously alarming. According to Jones (2003), employees and their pharmacy benefit management organizations are struggling to strike a balance between improvisations of clinical outcomes and the need to ensure sustainable budgeting practices on their savings out of each aspect of their established pharmacy benefits program. There is an increase in drugs that have lost their exclusive rights either from the government or the intergovernmental organizations that had been allowed to trade in drug distribution, hence becoming generically available. This discussion puts emphasis on pricing strategies in relation to pharmacy benefit management and how employers can achieve their objective of managing pharmacy costs while improving patient clinical outcomes. Pharmacy benefit management uses several pricing strategies that have been adopted to facilitate effective control of pharmacy expenses. To begin with, pharmacy benefit management has allowed generic pricing, which entails allowing some drugs to lose their exclusive ...