Is the Pharmacy Benefit System a Scam? Follow the Money

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Is the Pharmacy Benefit System a Scam? Follow the Money

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This episode of The Jim Stroud Podcast is brought to you by ProvenBase - an AI-powered talent acquisition and Deep Search sourcing platform that helps organizations find, engage, and hire hard-to-find candidates from thousands of real-time online sources. See it in action for yourself by visiting - https://provenbase.com ... In this episode: Are pharmacy benefits actually helping employers and employees—or has the system become a costly black box? Jim Stroud sits down with Alan Pannier, Chief Strategy Officer at SmithRx, to unpack how the U.S. pharmacy benefit ecosystem really works and why it can feel “scammy” even when it’s legal. Alan explains how PBMs were originally built to simplify pharmacy access, and how the model evolved into opaque pricing practices that can drive costs higher. In this episode, we break down spread pricing, rebate incentives, and why the “middle layer” of healthcare may be the biggest winner when no one can see the real numbers. Jim also presses for practical guidance: what HR leaders should ask their PBM, how to evaluate vendors using net cost vs. discount math, and what “fiduciary alignment” should look like in a contract. If you’re an employer, HR leader, or benefits decision-maker wondering why drug costs keep climbing—and what you can do about it—this conversation is your cheat sheet. Contact our guest: Alan Pannier - https://www.linkedin.com/in/alan-pannier SmithRx - http://www.smithrx.com/ Learn more about your ad choices. Visit megaphone.fm/adchoices

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