Opinion: Follow the money to understand how drug profits flow
If we want to understand why drug prices keep going up, we need an accurate picture of how drug profits flow.
The prescription drug world is in turmoil. Pharmacy giant CVS is buying Aetna, an insurance company, and Amazon appears to be entering the pharmacy market. Meanwhile, Alex Azar, President Trump’s nominee for secretary of Health and Human Services, indicated in his confirmation hearing that drug pricing will be his top priority, although he offered few details.
Before assessing the implications of the moves by the companies, or contemplating any federal interventions in the market, we need an accurate picture of how drug profits flow. Wednesday was just the latest of several examinations of the drug supply chain.
