Princeton University

Lower drug prices? Trump has one idea, but insurance giant Anthem has another

Lower drug prices? Trump has one idea, but insurance giant Anthem has another

The sky-high cost of prescription meds was back in the spotlight this week. First, President Trump said drug prices “are out of control” and drug companies are “getting away with murder.”

Then came news that the country’s second-largest health insurer, Anthem, will partner with CVS to launch its own pharmacy-benefit management business, or PBM — a move that Anthem said could save as much as $4 billion a year, which may be reflected in lower costs for patients.

A PBM runs the prescription-drug plans for insurers, employers and government agencies.

There’s also speculation, as yet unconfirmed, that e-commerce behemoth Amazon plans to start offering prescription meds...

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