Understanding Competition in U.S. Prescription Drug Markets: Entry and Supply Chain Dynamics
PBM's have drastically lower MAC prices to far below what most small independent pharmacies can purchase generic drugs for. The pharmacies are force to fill at a loss or risk losing their contact. PBM's are also not transparent to their clients often charging them far more than what they pay the pharmacies resulting in huge profits at the expense of clients, consumers and pharmacies. Many PBM's own insurance companies and funnel our longtime customers to their own mail order facilities or their own company owned stores bypassing the small independent stores. The merger of CVS Caremark with Aetna if allowed to go through will only further hurt these stores. This can not or should not be allowed to go through. If something isn't done to change these unfair tactics, independent pharmacy will go the way of the dinosaur. Consumer reports has named independent pharmacies consistently near the top of consumer ranking. Insurance companies form special alliances with large chain pharmacies making it more expensive to fill at the small stores. This as not a level playing field. Please help us survive by looking at these issues and level the field.