Biotech Values

[DewDiligence]

Fortune Magazine exposé on PBMs bears out everything you said about them (in #msg-68940530 and #msg-35353328):

http://fortune.com/2013/10/10/painful-prescription/

Meridian Health Systems, a nonprofit hospital chain was in the unusual position of being a seller of drugs to ESRX from its own pharmacies and a buyer of drugs from ESRX for its employee healthcare plan. Meridian did some checking and found that ESRX was marking up the price of some generic drugs by as much as 300%.

Even when confronted with hard data on the egregious spreads ESRX was exploiting, ESRX personnel continued to maintain that its own economic interests were aligned with Meridian’s. However, Meridian wised up and switched to one of the smaller “transparent” PBMs that charges a flat administrative fee per prescription with no markup.