In this episode, guest Antonio Ciaccia, president of consulting firm 3 Axis Advisors and founder/CEO of non-profit 46brooklyn Research, joins host Dan Karnuta for a discussion about U.S. drug pricing. The model is opaque because it runs on inflated list prices and hidden discounts created by government policy and industry incentives. Instead of competing on price, drug companies raise prices and offer rebates through intermediaries like pharmacy benefit managers (PBMs), who control which drugs are covered. This system weakens normal market forces and concentrates power in the middle of the supply chain.

Karnuta is an associate professor in the Naveen Jindal School of Management's Organizations, Strategy and International Management Area as well as director of its Professional Program in Healthcare Management.

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