Jim Greenwood, president and CEO of the Biotechnology Innovation Organization, in a recent column published on The Hill writes that increased attention by policymakers on pharmacy benefit managers is movement toward “overdue transparency within the pharmaceutical value chain.”
While PBMs were originally created to support negotiations by employers and insurers, widespread consolidation has “fundamentally changed” the business model.
“Today, the three biggest PBMs — CVS Health, Express Scripts and United Health-owned Optum Rx — are Fortune 25 companies, a status no pharmaceutical company enjoys,” Greenwood writes. “Because these mega-PBMs control 76 percent of the market, they have massive leverage … .”
To read Greenwood’s full column on The Hill, click here.