Today, we're going to talk about the price of prescription drugs. Pricing a prescription drug is a very complex process. There are a whole bunch of middlemen in between the pharmaceutical manufacturer and the end consumer that require hefty rebates and discounts. For example, there are pharmacy benefit managers. Those benefit managers require rebates of what wordss of 50 percent that means of a pharmaceutical manufacturer want to price their drug at 100 dollars.

They're going to actually have to price it at 200 dollars because they're giving away 100 dollars in the form of rebates to middle them. Likewise, half of the hospitals in this country have a water are referred to as 300 and 40 B discounts. These discounts upwards of 50 percent require the manufacturer to price their product essentially double to what they would normally price that product. We will never solve the problem of the high prices of prescription drugs until we eliminate these excessive rebates and discounts. 

There Is A Better Way