Opinion: John Arnold: Are pharmacy benefit managers the good guys or bad guys of drug pricing?
With changes to the basic business model, pharmacy benefit managers could be consumers' best hope for holding down the price of drugs, says @JohnArnoldFndtn
In the ongoing debate over drug prices, the pharmaceutical industry has been highly effective in shifting the blame to the middlemen — in particular to pharmacy benefit managers. As they currently operate, pharmacy benefit managers are part of the problem. But if incentives were realigned, pharmacy benefit managers could — and should — play more of a vital role in controlling runaway prices for prescription drugs.
PBMs started with the idea that their buying power would reduce health care costs and pass the savings on to consumers. They act like giant buying networks for drugs, representing consumers from multiple employers and insurers. In economic terms, they aggregate demand, which gives them leverage in the market.
PBMs use their buying
