Cost Plus Drugs and PBMs
Mark Cuban made some headlines this weekend with the official launch of Cost Plus Drugs.
His company's online DTC approach is unique considering the sourcing of drugs has historically been controlled by Pharmacies and Pharmacy Benefit Managers (PBMs).
These middlemen have provided a much needed service - the sourcing and delivery of drugs - to insurers and health plans.
However, many have succumb to taking significant portions of their revenues from undisclosed and non-transparent methods. #badactors
Transparency around their sources of revenue appears to be a huge part of the Cost Plus Drugs business model and consumers stand to benefit.
15% Markup + $3.00 Pharmacy Labor + Shipping Costs
DISCLAIMER... Not all PBMs are #badactors. There are some reputable ones within the market who are transparent about their sources of revenue.
If you're curious... I outlined some of the pricing games the #badactors like to play in this twitter thread.