Pharmacy Benefit Managers, PBMs, are firms that negotiate prices between drug manufacturers and insurance companies. Amazon is looking into bypassing this step by negotiating with the insurance company themselves and potentially lowering costs for their customers. This makes their pricing lower than CVS and other large retail pharmacies that still use the PBMs.
“Most recently, Amazon-PillPack engaged in direct discussions with Blue Cross Blue Shield, a federation of 36 health insurance plans that cover more than 100 million Americans, to provide its members with prescription home delivery,” CVS’ motion reads.
To read more into this article, follow this link, https://www.cnbc.com/2019/06/20/new-cvs-lawsuit-to-block-exec-from-working-for-amazon-reveals-concern.html?__source=sharebar|reddit&par=sharebar