Lack of Transparency in Rx Pricing

On Tuesday, January 27, 2019, the Senate Finance Committee held an important hearing on the cost of prescription drugs. A key element of the discussion focused on the rebates commonly given by drug manufacturers to pharmacy benefit managers (PBMs). Three PBMs control more than 70% of the pharmacy distribution within the US (link). They are Express Scripts, CVS, and OptumRx. These PBMs develop and manage the drug formularies for carriers and health plans. They are a middleman with considerable control over the pricing of prescription drugs. PBMs receive rebates from drug manufacturers, but under the current system, the discounts do [...]