Pharmaceutical Distribution System Economics
For every $100 spent at retail pharmacies, about $17 compensates for direct production costs, $41 accrues to the manufacturer, and $41 accrues to intermediaries in the distribution system.
In 2013, almost one-quarter of filled pharmacy prescriptions (23%) involved a patient copayment that exceeded the average reimbursement paid by the insurer by more than $2.00.
Drug rebates and list prices are positively correlated: On average, a $1 increase in rebates is associated with a $1.17 increase in list price.
The federal government overpaid on roughly half of the most common generic medicines in 2018.
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