When Christie Tucker’s son Preston was diagnosed with diabetes, his insulin prescription cost just $40. Now, two years later, Christie is paying $650 for a six-week supply of the medicine.

Many people reflexively blame drug companies for Tucker’s dilemma. But the firms producing Preston’s insulin aren’t making more money. Insulin list prices are going up, but net prices, the money drug firms actually receive, are falling sharply. The extra cash is instead landing in the pockets of pharmacy benefit managers.

Pharmacy benefit managers act as middlemen between drug companies, patients, pharmacists and insurers. They determine which medicines are covered, and at what copay or co-insurance level, for 210 million Americans’ health plans. They’re abusing this role to rake in enormous profits at the expense of patients’ health.

The gatekeeper role gives PBMs enormous bargaining power to buy medicines in bulk. Just three PBMs dominate 70 percent of the market, and pharmaceutical companies know they will not be able to access millions of patients unless they accommodate the demands of PBMs.

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