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The money comes from the money that would normally be kicked back to the pharmacy benefit manager[0] as a “rebate” from the pharmaceutical company. The retail p
by csnover 7y ago
The money comes from the money that would normally be kicked back to the pharmacy benefit manager[0] as a “rebate” from the pharmaceutical company. The retail prices are jacked up—at least in part—for the benefit of PBMs to extract money from the system[1]. My understanding is that GoodRX gets the negotiated “discount” price from a PBM like every other insurer and then makes a profit from the kickback.
[0] https://en.wikipedia.org/wiki/Pharmacy_benefit_management https://en.wikipedia.org/wiki/Pharmacy_benefit_management
[1] https://armandalegshow.com/episode/why-are-drug-prices-so-random-meet-mr-pbm/ https://armandalegshow.com/episode/why-are-drug-prices-so-ra...