Research Reveals Persistent Drug Pricing Distortions from PBM-Owned Pharmaceutical Companies
By
toomuchtodo
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Summary
The article examines the persistent distortions in U.S. drug pricing, particularly focusing on vertically integrated pharmacy benefit managers (PBMs) that also own drug companies. It discusses research showing how this integration creates misaligned incentives and competitive concerns within the pharmaceutical supply chain, with PBMs originally intended to control costs but now potentially contributing to pricing distortions through their ownership of drug manufacturers.
Key quotes
· 5 pulledMore recently, fellow drug channel archaeologist Adam Fein recently also wondered what PBM-owned drug companies list price behavior might tell us about the incentives within the U.S. drug pricing system.
A newly published paper from researchers Michael Carrier and Rachel Sachs further explores the competitive concerns and seeming misalignment of PBM incentives.
This summer, we launched a new research work that examined the costs yielded by a reborn and evolved species of the prescription drug supply chain: drug companies who are also part of larger vertically integrated pharmacy benefit manager (PBM) corporations.
In essence, PBMs are intended to be a st...
So while our study from this summer dug into the publicly-available data that shows the output of the costs reported in the Medicaid, Medicare
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