The Hidden Cost of Cheaper Drug Prices

The video discusses the high cost of prescription drugs in the US and the role of Pharmacy Benefit Managers (PBMs) like CVS Caremark and Express Scripts in negotiating drug prices. PBMs act as intermediaries between insurers and drug makers, using tactics that can limit drug choices. Critics argue that PBMs profit significantly from these negotiations, with much of the rebate savings remaining undisclosed. The video also compares the US system with European models, where governments negotiate prices without profiting, highlighting the unique challenges of the American healthcare system.

What is the significance of rebates in the context of PBMs and drug pricing?

How do the practices of PBMs in the U.S. differ from those in European countries regarding drug pricing?