Why Are Our Pharmacy Costs Exploding? Understanding PBMs and Prescription Spend

Pharmacy costs are hammering small and midsize employers, and many business owners don’t understand why their prescription drug spend is suddenly exploding.In this episode, Matthew Abbott breaks down what’s really driving rising pharmacy costs for employers and explains how Pharmacy Benefit Managers (PBMs) influence your prescription drug benefit behind the scenes. You’ll hear how specialty drugs, GLP‑1 medications, and opaque PBM pricing models can quietly push your group health insurance renewal higher—and what a practical, hands‑on employer can actually do to regain control.We cover:What PBMs are and how they affect drug pricing, formularies, and pharmacy networksHow spread pricing, rebate‑driven formularies, and limited transparency drive up employer prescription costsAction steps for small employers to improve PBM contracts, tighten specialty pharmacy management, and design smarter pharmacy benefits that support cost controlIf you run a trades or home‑service business and feel every dollar in payroll and benefits, this episode will help you understand why pharmacy costs are rising, how PBMs impact your prescription spend, and where you can push back as part of an overall, tax‑efficient employer benefits strategy.