Pharmacist holding prescriptionFor years, small pharmacy owners have been complaining that PBMshave been shortchanging them, cutting to unsustainable amounts thereimbursement they get. (Photo: Shutterstock)

Pharmacy-benefit managers are takingincreasingly large markups on generic drugs in New York, accordingto an analysis of Medicaid prescriptions at independent pharmaciesin the state.

In Medicaid, private insurers are paid by the state to coverlow-income citizens. The insurers in turn usually contract withpharmacy-benefit managers, or PBMs, paying them to provide drugcoverage. PBMs run by CVS Health Corp., Cigna Corp. and UnitedHealthGroup Inc. then bill insurers for coverage, and reimbursepharmacies for drugs.

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