Wednesday, March 20, 2019 | 2 a.m.
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As representatives of an organization that represents small businesses in Las Vegas, we feel it is essential for us not to sit silent on the increasing and cumbersome costs of health care.
Excessive costs restrict business growth as well as potential business startups. We strongly support and advocate for the removal of any unnecessary barriers to business growth.
In the 2017 legislative session and in the current session, multiple proposals aimed at addressing the rising cost of health care, including prescription drugs, have been presented and debated. While many of these proposals are well intended, one specifically would put savings back into small businesses and the pockets of patients — pharmaceutical manufacturer rebate reform.
The current marketplace for pharmaceuticals is laced with dubious incentives. For example, pharmaceutical manufacturers pay billions every year in rebates to pharmacy benefit managers (PBMs) and health insurance companies to have their prescription drugs covered and preferred on drug formularies.
This was originally created as a means to lower the cost of drugs. As intended, pharmaceutical manufacturers would pay rebates to PBMs and insurers with the goal that those rebates would be passed through as discounts to patients and employers.
Instead, the PBMs and health insurers have converted these rebates into profit, leaving no discounts for patients or employers.
The Nevada Legislature could eliminate pharmaceutical manufacturer rebates, which in turn would lower the list price of drugs and save patients and small businesses billions of dollars. Compelling insurers and pharmacy benefit managers to pass on the rebates they receive would lead to one of two scenarios: Either consumers would receive significant financial assistance with the cost of their prescriptions, or drug companies could dramatically drop the list price, as they would no longer have to factor in the cost of such rebates.
Both of these occurrences result in a victory for patients and small businesses.
Sonny Vinuya is president of the Las Vegas Asian Chamber of Commerce. Ana Wood is a board member and chair of the chamber’s Government Affairs Committee.
