Davis: Pharmacy benefit managers' power over patients, pocketbooks goes unchecked - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
May 9, 2024 Newswires
Share
Share
Tweet
Email

Davis: Pharmacy benefit managers’ power over patients, pocketbooks goes unchecked

Rio Grande Guardian (McAllen, TX)
Whether you rely on private health insurance or taxpayer-funded programs like Medicare, your family's trip to the pharmacy for prescription medicines has undoubtedly become more expensive over the years.

What drives that rising cost? Shadowy middlemen known as pharmacy benefit managers (PBMs).

Our broken healthcare system allows these middlemen to exert undue influence over drug pricing. This power wielded by PBMs has resulted in unjustifiable increases in prescription drug costs, burdening patients already grappling with challenges in accessing essential medications.

Consider, for instance, UnitedHealth Group (UHG). This mega-corporation has made headlines for a recent cyberattack that compromised its patient data. This incident is now the subject of a federal investigation and potential Congressional hearings. Any such Congressional hearing would also be an opportunity to assess UHG's and the larger PBM industry's control of drug pricing – and the impact on patients.

UHG is a multi-faceted corporation with business units ranging from a PBM to pharmacies and from primary care centers to a health technology company. With $370 billion in revenues last year alone, UHG has grown so big that it owns its own FDIC-insured bank to pay medical providers waiting on pending insurance claims.

UHG is one of six dominant players that hold a disproportionate market share of our nation's healthcare system. Consolidations, mergers and acquisitions have created a monopoly-like environment that wields too much power over Medicare, Medicaid and privately insured patients.

These corporations are some of the nation's largest and most profitable, and they use their market domination to negotiate large rebates or discounts from drug manufacturers – savings that are supposed to be intended for patients. UHG's PBM, along with two others – Cigna's Express Scripts and CVS/Aetna's Caremark – determine the prices patients pay for about 80 percent of prescription drugs sold in our country today.

While these PBMs claim to lower out-of-pocket costs by passing these savings on to patients, the reality is quite the opposite. PBMs retain these funds for their own benefit and with little transparency, while patients' costs continue to increase.

And yet, PBMs appear to be largely immune from legislative and regulatory oversight. Where is the accountability? It's time for Congress to step in, and as a ranking member of the U.S. Senate, I hope our own Senator John Cornyn will help by leading this important charge.

Without a doubt, PBMs should be held accountable. Their influence should not impede the affordability and accessibility of vital medications that are sometimes necessary to keep patients like my own child alive.

Congress must take decisive action and enact substantive PBM reform now. For starters, to foster transparency and fairness, it is time to "de-link" the price of medicines from PBM revenues. This would allow PBMs to be paid a flat fee for their services, allowing patients to benefit from the savings negotiated with drug manufacturers as intended.

There's much work to be done. Senator Cornyn and his colleagues in Congress must hold UHG and their PBM counterparts accountable for past actions and present practices.

We need to encourage a fair pharmaceutical pricing system that prioritizes patients' well-being over PBMs' self-interests and profits.

Editor's Note: The above guest column was penned by Khrystal Davis, founding president of the Texas Rare Alliance, a mother of a rare disease child, and an active patient advocate for improving access to healthcare. The column appears in The Rio Grande Guardian International News Service with the permission of the author.

The post Davis: Pharmacy benefit managers' power over patients, pocketbooks goes unchecked appeared first on Rio Grande Guardian.

Older

In Re: TS# 116791-WA-Trustee Sale

Newer

GLOBAL LIFE ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against Global Life, Inc. and Encourages Investors to Contact the Firm

Advisor News

  • How financial planners can use modeling scenarios to boost client confidence
  • Affordability on Florida lawmakers’ minds as they return to the state Capitol
  • Gen X confident in investment decisions, despite having no plan
  • Most Americans optimistic about a financial ‘resolution rebound’ in 2026
  • Mitigating recession-based client anxiety
More Advisor News

Annuity News

  • Retirees drive demand for pension-like income amid $4T savings gap
  • Reframing lifetime income as an essential part of retirement planning
  • Integrity adds further scale with blockbuster acquisition of AIMCOR
  • MetLife Declares First Quarter 2026 Common Stock Dividend
  • Using annuities as a legacy tool: The ROP feature
More Annuity News

Health/Employee Benefits News

  • Christine O'Brien, UnitedHealthcare CEO for La.-Miss., wants to lower insurance costs. Here's how
  • In Snohomish County, new year brings changes to health insurance
  • Visitor Guard® Unveils 2026 Visitor Insurance Guide for Families, Seniors, and Students Traveling to the US
  • UCare CEO salary topped $1M as the health insurer foundered
  • Va. Republicans split over extending Va. Republicans split over extending health care subsidies
More Health/Employee Benefits News

Life Insurance News

  • Best's Review Looks at What’s Next in 2026
  • Life insurance application activity ends 2025 with record growth, MIB reports
  • Vermont judge sides with National Life on IUL illustrations lawsuit
  • AM Best Affirms Credit Ratings of Insignia Life S.A. de C.V.
  • Whole life or IUL? Help clients to choose what’s best for them
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

8.25% Cap Guaranteed for the Full Term
Guaranteed cap rate for 5 & 7 years—no annual resets. Explore Oceanview CapLock FIA.

Press Releases

  • RFP #T02523
  • Two industry finance experts join National Life Group amid accelerated growth
  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet