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<classification authority="sudocs">GA 1.13:T-HEHS-96-216</classification>
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 <subject>Pharmaceutical industry</subject>
 <subject>Drugs</subject>
 <subject>Price regulation</subject>
 <subject>Price adjustments</subject>
 <subject>Customer service</subject>
 <subject>Health care cost control</subject>
 <subject>Managed health care</subject>
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 <title>Prescription Drug Pricing: Implications for Retail Pharmacies</title>
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<abstract>GAO discussed the implications of prescription drug pricing for retail
pharmacies, focusing on the: (1) changes in the process of getting
prescription drugs from manufacturers to patients; and (2) consequences
for and response of retail pharmacies to these changes. GAO noted that:
(1) health insurers have used their consolidated buying power to obtain
drug discounts not available to retail pharmacies; (2) health insurers
and pharmacy benefit managers (PBM) use the size of their member
populations as leverage to help reduce the amounts that they reimburse
pharmacies for prescriptions dispensed to those populations; (3) retail
pharmacies have been facing increased competition from mail order
pharmacies; and (4) retail pharmacies have responded to the changes in
pharmaceutical pricing by waging lawsuits against leading drug
manufacturers and wholesalers, developing more competitive strategies
for gaining business, and campaigning for legislative action.</abstract>
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 <topic>Pharmaceutical industry</topic>
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 <topic>Price regulation</topic>
 <topic>Price adjustments</topic>
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 <topic>Health care cost control</topic>
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