Milwaukee pharmacist explains how President's executive order could impact prescription drug pricing, and how long it could take to see a change

MILWAUKEE (CBS 58) -- On Monday, May 12, President Trump signed an executive order aimed at lowering prescription drug prices in the United States.

The president claims this action will cut prices drastically, but it's unclear when that could happen, or how.

A Milwaukee pharmacist said it could take a few years for the cost of drugs to come down, but he and pharmacists around the country are very happy with any action that starts the process.

Dr. Hashim Zaibak is the founder of Hayat Pharmacy. He told us, "They are artificially increasing the cost of the medication. A lot of that money is going into their pockets in the form of rebates."

The "they" Dr. Zaibak is describing are pharmacy benefit managers, or PBMs.

They only exist in the United States, middlemen between health insurers, drug producers, and pharmacies.

Dr. Zaibak explained, "They're not the ones researching and developing the drugs. They're not the ones investing in pharmacists on the front lines to counsel and talk to the patients."

What they do, though, is charge for their services, hundreds, sometimes thousands percent more than the drugs actually cost.

The National Community Pharmacists Association -NCPA- said PBMs are "the only link in the supply chain that produces nothing of value for patients."

Just three PBMs control 80% of the prescription drugs in the United States.

Dr. Zaibak said, "This is not the free market that we have always talked about here in the United States."

The NCPA said it's not a coincidence the US pays more for drugs than any other country and is the only country in the world with PBMs.

Back in January, a Federal Trade Commission study found the top three PBMs inflated prices to generate more than $7.3 billion in revenue more than the drugs' estimated acquisition costs.

Dr. Zaibak said pharmacists want lower costs because they'll benefit the entire system: patients, pharmacists, and manufacturers.

So any action to lower prices is welcome. But, he said, "In my opinion, it's going to take a few years. And I think it's going to take multiple steps."

Dr. Zaibak also said PBMs are to blame for the closing of many community pharmacies, including chains.

He said when PBMs keep their rebate money and don't pass it on, pharmacies are impacted, and many choose to close their doors.