Health Care

Colorado law takes aim at PBM profits with flat-fee overhaul

It delinks their revenue from prescription drug prices.
A CVS Pharmacy in the Harlem neighborhood of New York City. (AP Photo/Ted Shaffrey, File)

A new Colorado law is set to alter the way pharmacy benefit managers are paid, making it one of the most aggressive efforts to date in a nationwide push to overhaul the industry’s business practices.

Critics of the industry have long argued that pharmacy benefit managers’ obscure and complex business models have inflated the price of prescription drugs, largely through rebates that they negotiate with drug companies and fees they collect from insurers.

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