Everyone knows that drug costs are going up. Most people blame the drug companies, which HAVE increased prices. There is one factor which is much larger that people ignore.PBM’s.
What is a PBM? A “pharmacy benefits manager” aka a middleman.
These companies take as about 30% of the drug costs that are paid by your insurance company. They do not deliver any drugs. They do not provide any service to the patient. They simply charge outrageous fees to insurance companies and patients.
Gag rules between pharmacy benefit managers and pharmacies prevent pharmacists from telling their customers that they could get lower prices by paying cash. The very existence of such clauses should raise hackles as to the real business model of the PBM industry.