Why Are Medicine Prices So High in America?

Is the war on PBMs really about helping patients - or just another power grab dressed up as reform?

In this eye-opening episode of The Brian Nichols Show, we rip the mask off the growing crusade against pharmacy benefit managers (PBMs). Critics claim PBMs are behind rising drug costs, but is that the full story - or just the version Big Pharma wants you to believe? If you’ve ever looked at your pharmacy receipt and wondered why your medication costs more than your electric bill, you won’t want to miss this deep dive.

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Brian welcomes economist and researcher Satya Marar from the Mercatus Center to break down how PBMs actually work, why they’re being blamed for high drug prices, and what the real drivers of healthcare inflation are. Together, they dismantle the most common talking points against PBMs, including rebate manipulation, lack of transparency, spread pricing, and claims of collusion with insurers. It's a masterclass in separating economic fact from political fiction.

We also unpack the emotional tug-of-war between small-town pharmacies and corporate chains. What happens when “Fred’s Pharmacy” can’t compete with CVS and Walgreens? Is it worth paying more for drugs to keep the local guy afloat - or are there smarter ways to balance access, cost, and community values without wrecking the system?

But here’s the kicker: what if the real culprit isn't the PBMs at all, but a broken government pricing system and global freeloading by other countries? Yeah, we go there. From Medicare’s price models to how the U.S. subsidizes R&D for the world, we expose what’s actually driving your pill prices through the roof.

If you're sick of the soundbites and want real answers about the mess that is American drug pricing - this episode delivers. Tune in, take notes, and walk away with a smarter, sharper view of healthcare economics than most politicians will ever have.

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