“While biopharmaceutical companies set the set list price of a medicine, insurers ultimately determine what patients pay out of pocket,” said Holly Campbell, spokeswoman for the Pharmaceutical Research and Manufacturers of America. “We agree the status quo is not working for patients and our health care system needs to change, but we need to address the right problem.’’…”Drugmakers alone have the power to set prices. They do this unrelated to the rebates they negotiate with (pharmacy benefit managers),” said JC Scott, president and CEO of the Pharmaceutical Care Management Association, the trade group for PBMs. He cited a federal report that said 40 percent of branded pharmaceuticals in 2015 were not subject to rebates, yet prices on those drugs also continue to rise.”
Washington Post
February 27, 2019
“The pharmaceutical industry’s reputation is at rock bottom in public surveys.”
Reputation crisis: disappointment, diminished trust, causing economic and political losses.
Reputations are valuable strategic intangible assets. Threats to these assets⏤ enterprise reputation risks, often mislabeled “brand risks” ⏤ need to be managed, and management needs to be overseen through reputation risk governance lest reputational damage or reputational harm result in long-tailed go-forward losses in economic value and/or political power. Because these intangible risks arise from the interplay of stakeholder expectation, experiences, and media amplification, parametric insurances for intangible asset risks, for reputational value, for reputational harm, and for reputation assurance help mitigate risk by telling a simple, convincing and completely credible story of quality reputation governance to stakeholders. This story telling effect is the expressive power of insurance complementing insurance’s better known instrumental power of indemnification.
Risk management, risk financing in insurance captives, and risk transfer through reputation insurances comprise the constituent elements of a comprehensive solution.
What’s your strategy?