By Ginny Crisp
Generic drugs cost pennies to make. So why does your plan sometimes pay dollars?
The journey from manufacturer to your pharmacy claim has more stops than most employers realize and margin gets added at each one.
Manufacturer → Wholesaler → Pharmacy → PBM → Your Plan
Each step takes a cut. The PBM step is where self-funded employers have the most leverage and the least visibility.
Today’s visual shows where the money actually goes on a generic prescription. Understanding this flow is step one to negotiating better.
