Government broke healthcare. Instead of fixing it, it’s blaming market solutions

A number of states say they’re trying to fix healthcare costs by telling pharmacy benefit managers how they can operate. Instead of focusing on our broken and convoluted system, these politicians claim that PBMs making business operations simpler and more streamlined is somehow the problem.

The business model is called vertical integration. It happens across every industry to benefit consumers under many circumstances and simply means a business operates at multiple stages of production or delivery. A grocery store may own farms, trucks, and stores. A technology company may make hardware, software, and services. A retailer may run warehouses, delivery networks, and online marketplaces.