Formulary guidance and transparency from P&T to point of care

Trends That Matter for Prescription Pricing

Posted by Matt Breese on May 11, 2017

Find me on:

In our weekly Trends that Matter series, we provide engaging infographics from healthcare influencers to highlight general trends affecting the pharmaceutical industry. This week's featured topic is prescription pricing. 

According to Lydia Ramsey, Reporter at Business Insider, it typically takes five companies to bring a drug all the way from initial development to a patient's medicine cabinet.

In most cases, the following companies are involved in the drug development, distribution, and pricing process:

  1. Pharma companies who develop and make drugs
  2. Wholesalers that distribute drugs to pharmacies and hospitals
  3. Pharmacies that dispense medications to customers
  4. PBMs who negotiate with drug companies and payers to get rebates
  5. Health insurers that help consumers pay for medications

In the graphic below, Skye Gould, graphic designer at Business Insider, gives an example of the medication payment process.

Trends That Matter for Prescription Pricing-355420-edited.pngTrends That Matter for Prescription Pricing-406645-edited.png

Subscribe to the MMIT blog for more insights on trends affecting pharmaceutical manufacturers, providers and payers.

Subscribe for Weekly Trends that Matter

Topics: Industry Trends