Americans pay the most money for prescription drugs out of any nation in the world. Between 2000 and 2015, the United States' per capita spending on prescription drugs increased from $429 per year to $1,104. Now, one may try to discount this number as a result of inflation, however, prescription drug companies have been known to hike the price of their drugs by an average of 10.5% per year, which is much higher than the average 2% inflation rate.
At the heart of the problem are the pharmacy benefit managers, or PBMs. These organizations act as the middlemen that negotiate the price that hospitals, pharmacies, and insurance companies pay for prescription drugs.
Read Full Article »