Understanding Competition in U.S. Prescription Drug Markets: Entry and Supply Chain Dynamics #00474

Submission Number:
00474
Commenter:
Anonymous
Initiative Name:
Understanding Competition in U.S. Prescription Drug Markets: Entry and Supply Chain Dynamics
FOR CONFIDENTIAL INFORMATION ONLY As a Pharmacist Owner, I have seen Drug cost issues for over 25 years. While some reasons are because of Drug pricing by Drug manufacturer, most of the reason falls on PBM. A PBM while has a role to play in claims processing, they have ended up becoming price brokerage. With that role, PBM's goal is to maximize their take in price adjustment. I know for a fact that out of every $1 spent on Drug, 60c goes to drug company, 5c to wholesale distributor, 15c to Pharmacist and remainder to PBM 20c. So as one can see, for claims processing PBM is paid 20% of drug cost. They have not been able to reduce drug cost. They may show isolated incident, however not for most drugs. FOR CONFIDENTIAL INFORMATION ONLY