Amazon’s entry into the prescription drug market could help the sector “better align price and value,” a Forbes contributor says in a recent write up.
Joshua Cohen says new “market forces” have the potential to address some of the big transparency and pricing issues currently running rampant in the current pharmacy benefit manager landscape.
Due to little disclosure from PBMs, the consumer has much over which to speculate.
“Because PBMs do not disclose rebate information, consumers cannot effectively determine if their PBM is favoring drugs with the lowest net out-of-pocket cost,” Cohen writes. “The PBM may in fact be favoring drugs with a higher list price due to the rebates or claw backs it is earning.”
According to Cohen, new market disruptors like Amazon could help tear down transparency barriers to deliver better services to end users.
“The disruptors could peel back layers of obscure pricing practices to reveal actual prices among competing products to patients, while providing information on the comparative effectiveness of drugs,” he writes.