Pharma companies aren’t pillage insurance, Its the exact opposite. The pharmacy benefits managers are negotiating higher list prices because they take home reba

Pharma companies aren’t pillage insurance, Its the exact opposite. The pharmacy benefits managers are negotiating higher list prices because they take home rebates as a cut of list prices. And the insurance companies don’t care because the pharmacy benefits managers forward part of the rebates to them, and as long as the actual net costs are low they benefit more from higher list prices. Also for many instances the same companies own both insurer, pharmacy benefit manager and the pharmacy. This all plays along nicely because they point the fingers at the companies producing the actual drugs as the bad guys because “prices are rising” yet for many drugs the pharmacy benefits manger and insurer take 2/3 of the entire cost! While the companies actually doing research, production, marketing and distribution take 1/3 to cover everything. And while they get blamed for the list price increases, their yearly net take-home on the drugs is steadily falling.