Is More Information Always Better? Mandatory Disclosure Regulations in the Prescription Drug Market

Authors

Joanna Shepherd, Emory University School of LawFollow

Author ORCID Identifier

0000-0002-1435-0197

Document Type

Article

Publication Date

2013

Keywords

Prescription drugs, Mandatory disclosure regulations, Prescription drug costs, Affordable Care Act, Sensitive business information

Abstract

This Article proceeds as follows. In Section I, I describe the structure of the PBM industry. I also describe the business model PBMs employ to administer prescription drug coverage and the methods they use to reduce prescription drug spending. In Section II, I discuss mandatory disclosure regulations enacted in several states and at the federal level under the Affordable Care Act. In Section III, I explain why mandatory disclosure regulations are not needed to ensure that health plan sponsors pay a competitive price for PBM services. In Section IV, I discuss the various costs that mandatory disclosure regulations will impose on PBMs. I also explain how these costs will weaken competition in the PBM industry, compelling both consumers and health plan sponsors to pay more for prescription drugs and prescription drug coverage.

First Page

1

Publication Title

Cornell Law Review Online

Recommended Citation

Joanna Shepherd, Is More Information Always Better? Mandatory Disclosure Regulations in the Prescription Drug Market, 99 Cornell L. Rev. Online 1 (2013-2015).