The Role of PBMs in the Controversy over Drug Pricing

The recent controversy over Mylan Pharmaceuticals sharp increase to the price of its EpiPen, an emergency injection of epinephrine to treat someone suffering a severe and potentially fatal allergic reaction, has once again ignited public debates over drug pricing. While drugmakers have been in the sights of the public, other players in the supply chain have escaped scrutiny. David Balto, a Washington, D.C.-based antitrust attorney, in a recent piece in The Hill, calls attention to the role pharmacy benefits managers play in the price equation. We spoke to Balto about PBMs, their growing power, and the perverse incentives they have to work against the best interest of consumers.