How pharmacy benefit managers influence drug pricing

The point of prescription drugs is to help people improve their quality of life. When a doctor writes a prescription and sends it along to the pharmacy, oftentimes they’re more focused on the drug’s effectiveness than its cost.
But when a patient picks up that drug, the price they will be asked to pay at the counter takes center stage - and it depends on a complex combination of factors. Is it a brand-name or a generic drug? Does the patient have health insurance? If so, does that insurance cover the drug?
Also, how do health insurers decide which drugs to cover, and what amount they’ll cover?
We answer all of these questions in Part 2 of this series. The video outlines what pharmacy benefit managers, or PBMs, are; how formularies and rebates work; and how PBMs use them to mediate with drugmakers, health insurers, and pharmacies in ways that influence the cost of drugs.
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[@ayoyo777]

Amazing work!!

[@lorettab6092]

Great job!

[@lisap8411]

Is there any data to support the argument that innovation decreases if prices are controlled? Can we use historical or regional variation in innovation to support this claim?