February 6, 2023
Life Sciences
  • A Wall Street Journal article examines how Amazon’s new RxPass prescription service and Mark Cuban’s Cost Plus Drug Co. are increasing the downward pressure on the cost of generic drugs. The competition from both entities has instigated more established players to act. For example, Optum Rx last month announced that it was launching a new tool aimed at making it easier to compare the direct-to-consumer price for generic drugs with insurance pricing. According to one researcher, consumers tend to overpay for generic drugs when they use insurance and “the economic rationale for insuring cheap generic drugs is weak since their use is often predictable and the expense modest.” Thus, in the future more consumers might ultimately bypass insurance companies altogether. (Article here)