The PBM industry originally existed to help manage prescription drug costs and benefits overall. In reality, PBMs are diverting potential prescription drug savings into the highest rates of profit in the prescription drug supply chain. Three major PBM companies have taken control of the market, becoming so profitable over time, they are among the Fortune 25 companies and ranked higher than the drug manufacturers whose prices they had promised to control.
It’s no coincidence that out-of-pocket drug costs are rising, while PBM profits are increasing. As PBMs are facing increased scrutiny among legislators and regulators, more and more data is coming to light. See below for more on the ways PBMs profit, their role in the drug pricing system, what experts are saying, and more.
Fortunately, leaders across the country are starting to question PBMs value to the prescription drug pricing system.