FTC Says Middlemen Appear to Be Driving Up Drug Prices - eviltoast

In a report, the regulator sharply criticized pharmacy benefit managers, a reversal from its longstanding hands-off approach to policing the companies.

  • Nougat@fedia.io
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    4 months ago

    That’s kind of the only reason middlemen middlepeople exist. To buy things for a lower price, sell those same things at a higher price, and keep the difference.

    • snooggums@midwest.social
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      4 months ago

      There is a level of value being added when the middlepeople handle transportation, logistics, ensure availability, etc. It isn’t only buying and selling in a vacuum like the stock market.

      That said, a lot of them take far more value than they add, which is a problem.

      • SeaJ@lemm.ee
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        4 months ago

        Agreed for most cases. But for the medical industry, pharmacy benefit managers, which are largely owned by the insurance companies, do nothing but drive up the price because they are acting more like a monopsony. So it’s a case of the insurance companies often getting paid two (if they own the pharmacy benefit manager) or three times (if they own the clinic) and adding an extra cost each step of the way.

    • Tujio@lemmy.world
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      4 months ago

      Sorta. As a middleman who works his ass off to make other people’s lives easier, it’s not quite as black and white. My job is kind of unique, though. We are geographically located in the only access point for a niche market. Our vendors physically cannot supply our customers, so we middle.

      I’m sure there are a shitload of useless middlers suckling off the consumer’s teat, but sometimes we are necessary.