PBMs Undercut Local Pharmacies To Put Them Out Of Business

In this May 7, 2025 article from Hudson Valley One – they interview 3 local, independent pharmacies who explain why Prescription Benefit Managers (PBMs) are bad for patients.  PBMs control 80% of prescription drug benefit transactions, they undercut the cost of medication, all to control and create a monopoly in order to increase their profits and take away patient choices.

Pharmacists George Nekos, of Nekos-Dedrick’s Pharmacy says in this article, “You’re buying the fills, you’re selling them, then you put the invoice to the PBM. They look at the reimbursement, and they’re undercutting it,” Nekos said. “On most regular brand names, we lose anywhere from $20 to $60. As long as we have it in stock, we’re required to dispense it at a loss.”

Three PBMs — OptumRx, CVS Caremark, and Express Scripts — currently control 81% of prescription drug benefit transactions in the United States.  “It’s a huge, national issue,” says Nekos, “CVS closed 900 stores.”  Pharmacists Ed Ullmann, owner of WellnessRx in Phoenicia says, “Rite Aid, which was the other large one, is now in bankruptcy.  They sold half their stores to Walgreen’s.”  And in spite of the Rite Aid buy, Walgreen’s announced in October 2024 that it intended to close 1200 stores.

This May 6, 2025 article from Lexology – explains how Arkansas is taking unprecedented steps to prohibit PBMs from acquiring pharmacies.  Which will help stop the monopoly PBMs have.  It goes one to include critical dates for this Bill, House Bill 1150, and the impact it has already had.

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