Frier Levitt co-founding partner Jonathan Levitt is featured in a Bloomberg Law article titled, “More Employers Turning to Benefit Startups to Manage Drug Costs” by Lauren Clason. The article explores the growing trend of employers transitioning to smaller Pharmacy Benefit Managers (PBMs) in an effort to combat rising drug costs and adhere to strengthened fiduciary duties. Currently, three major PBMs control 80% of the market, but newer PBMs emerging have promised to cut costs with transparent business models. However, moving away from the “industry giants” can be a daunting shift in the complex world of pharmacy operations.
Jonathan possesses deep industry knowledge of PBMs, including the big three (CVS’ Caremark, Cigna’s Express Scripts and UnitedHealth’s Optum Rx). In the article, Jonathan discusses the secretive and inequitable practices these large PBMs employ, which drive up drug costs. He notes, “PBMs can block employers from accessing pricing data or restrict them from performing audits…Consultants can also require hidden commissions as a condition of including a PBM’s bid for an employer contract.” Jonathan provides further insights throughout the article surrounding issues with PBM practices.
