Medicine is expensive and only seems to get more so every year. But this doesn’t have to be inevitable. The reason patients pay so much is an insurance industry that no longer functions like insurance. Instead of handling catastrophic and unexpected problems, health insurance is the go-to solution for routine healthcare, including predictable pharmaceutical needs. This has disconnected patients from the prices of their medicines and allowed Pharmacy Benefit Managers (PBMs) to profit from drug discounts intended for patients. The result has been higher drug prices as cheaper medicines routinely lose out to expensive name brands.
Direct-to-consumer (DTC) pharmaceutical sales get around PBMs so patients can get their medicine without a mark-up. When patients buy medications directly from manufacturers prices are transparent, generating competition that allows patients to save money when they buy their medicines. DTC drug sales are not a futuristic concept; they’re already here. Major manufacturers like Eli Lilly and Pfizer run their own online platforms. And because prescriptions are still legally required, DTC does this without risking patient safety.
Justin Leventhal is a senior policy analyst for the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.