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Amazon - Books, Music, Prescriptions?
In the summer of 2018 Amazon purchased PillPack a mail order prescription company that packages all your prescriptions in individual daily packets. PillPack had an amazing concept and Amazon wants to scale it worldwide. The nearly $1,000,000,000,000 ($1 Trillion) pharmaceutical industry has long been controlled by Pharmacy Benefit Managers. These are the middle men between those who manufacture the medicines and the individuals, insurance companies or Medicare who pay for them.
PBMs create very confidential and secretive pricing practices where no one really knows the actual cost of a medicine especially the end user. What happens many times is a prescription has a retail price the customer pays but behind the scenes the insurance company receives a cash rebate or credit for that prescription reducing their actual cost. How much is the rebate you ask? Only the PBM and insurance company know and they claim it is used to keep health care prices lower for everyone.
Congress is working hard to create more transparency in drug pricing and do away with behind the scenes rebates and discounts. There is of course a lot of pushback from the pharmacy lobby in Washington so time will tell if this does in fact lower pharmacy costs.
Amazon on the other hand could do to prescriptions what they have done to buying pretty much anything else. It seems they are already talking with insurance companies about working directly with them and cutting out the PBMs or middle men. This is not welcome news to the decades old pharmaceutical industry and they are pushing back. While it may take years it seems, we may soon be getting lower cost medications delivered to our doors with just the push of a button.
Here is a very interesting article and videos that better explain how this disruption could take place. These are of course my thoughts and opinions but I have worked in the health insurance industry for 25 years.