Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
Pharmaceutical executives appear before the Senate. Photo: Tom Williams/CQ Roll Call via Getty Images
Pharmaceutical companies put a lot of the blame for high drug prices on pharmacy benefit managers. But big drug companies are also big employers — which means they rely on PBMs to manage their own health care benefits.
Why it matters: PBMs are part of the system, so it's not necessarily surprising drug companies use them. But it's not clear whether pharma companies are practicing what they preach on the details of PBM contracts and the way savings are distributed.
Between the lines: PBMs caught a lot of criticism from the 7 pharmaceutical executives who testified before a Senate committee last week about drug prices. So Axios asked those 7 companies about the pharmacy benefits they offer to their employees.
Like many large employers, they work with just 2 of the largest PBMs.
- Bristol-Myers Squibb said it uses CVS Caremark. AbbVie and Pfizer declined to answer Axios' questions, but a search of AbbVie's and Pfizer's employee benefits shows they use CVS Caremark for their employees, dependents and retirees.
- AstraZeneca and Johnson & Johnson both said they hire Express Scripts for their employee drug benefits. Merck and Sanofi declined to answer, but both companies appear to use Express Scripts.
The intrigue: When it comes to public policy, drugmakers argue PBMs' discounts should be delivered to customers at the pharmacy counter, rather than held back and used to reduce insurance premiums. But it's unclear whether that's how they operate.
- Bristol-Myers Squibb said that "in lieu of receiving rebates back directly from CVS Caremark," its "employees, eligible dependents and retirees realize lower out-of-pocket amounts."
- Johnson & Johnson was the only other company to somewhat address rebates, saying "any savings go back to our employees" by "lowering premiums and out-of-pocket costs."
Some companies, including Pfizer and Sanofi, cover 100% of the cost of their own brand-name drugs for employees, even if cheaper generic versions are available.