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As pharmaceutical companies prepare to meet with the Trump administration to negotiate drug prices, CVS Health (CVS) executive vice president and group President Prem Shah sits down with Yahoo Finance senior health reporter Anjalee Khemlani and Julie Hyman on today's episode of Market Domination.
Shah speaks on the role pharmacy benefit managers (PBMs) have in negotiating drug prices:
"10% of the drugs cost about 90% of the total pharmacy cost [in the United States], these are the branded pharmaceutical agents. And so when you ask the question... about why it is that PBMs exist, we create competition amongst branded products and we help drive down the cost. And so if you think about what we do versus others, we're working every single day with those formularies and other mechanisms to help our clients save money, utilize utilization management tools, and other tools to do that."
Watch the video above to hear Shah comment more on healthcare costs and the pricing of generic drugs as compared to branded drugs.
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Also catch Anjalee Khemlani's interview with CVS CEO David Joyner
This post was written by Luke Carberry Mogan.