Bob Dixon invites Daniel Strause to the show. Daniel is an expert on the often-hidden world of Pharmaceutical Benefit Managers (PBMs). Discover how these little-known entities have become the most significant influence on skyrocketing pharmaceutical spending in America. Daniel sheds light on the surprising history of PBMs, from their innocuous beginnings as administrative facilitators to their current role in manipulating drug prices for profit. Learn about the legislative loopholes that enabled this transformation, the consolidation of the PBM market into the hands of just three major players, and the perverse incentives within the healthcare system that drive up costs for employers and employees alike.
Key Takeaways:
Quotes from Daniel Strause this episode:
"PBM, it's an acronym for Pharmaceutical Benefit Manager that 99% of America has never heard of before, but you'd be shocked to find out they are the most significant influence of why we have the hyperinflation in pharmaceutical, in our pharmaceutical spend."
"In the last 10 years, there's been a hyper consolidation where you now have three conglomerates that own over 85% of the US market."
"60% of all bankruptcies in America have to do with healthcare. 75% of those bankruptcies are people that are fully insured. Employers are not even realizing the very vendors they're picking for their insurance has a direct causal effect on their employee's Bankruptcies."
