By Katy Talento for Townhall
When I served as a White House health advisor, I invited a group of large employers to come describe the challenges company health plans faced. The top complaint? An obscure type of middleman that’s part of every health plan — the pharmacy benefit manager (PBM). The PBM industry, with only three giant companies controlling almost 80 percent of the market, offers a seemingly simple value proposition: if you’re an employer or an insurance carrier serving individuals or businesses, hire the PBM to help you get volume discounts on prescription drug makers.
Sounds great! But, what if these middlemen pocketed much of the savings instead of passing them on to employers?