(THE FEDERALIST) – Believe it or not, Americans just might have received some good news on the inflation and prescription drug pricing front. But despite what the left might want to claim, the price controls included in Democrats’ Inflation (Reduction) Act had nothing to do with it.
The Wall Street Journal recently broke the news that pharmacy giant CVS Health is about to change its pricing model. Over time, an industry leader’s move to a more transparent way of pricing prescription drugs could lead to a simpler system — and real savings for patients.
Before analyzing CVS’s move, it’s worth dissecting the current system of drug pricing. Right now, most pharmaceutical benefit managers (PBMs) — which includes CVS — focus on achieving high rebates for their insurer customers.
