What is the “Good-Rx” Business Model?

By Anonymous

Good Rx makes money by perpetuating the, artificially set, high sticker prices of medications and receiving a portion of Pharmacy Benefits Manager [PBM] fees.

How it Works

GoodRx taps into PBM network for their “discounts” off of sticker price (e.g. Express Scripts, Optum Rx, Navitus … etc)

Consumer pays the newly “discounted” drug price.

Pharmacy pays PBM fee.

PBM pays GoodRx portion of the fee.

Good Rx adjusted EBITDA in 2019: $160 Million

Good Rx 2020 revenue is up 48% first half of 2020 – $257M

IPO: https://mobile-reuters-com.cdn.ampproject.org/c/s/mobile.reuters.com/article/amp/idUSKBN24Y0N6


This is not market value.

This is another hand in the cookie jar keeping healthcare prices artificially high.

The consumer is the one ultimately harmed.


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2 Responses

  1. GPO’s

    The new GPO’s are a shell game to hide rebates from the plan sponsor and health plans. The majority of previous amounts that were considered rebates are now being paid as admin fees and retained by the GPO’s that are owned by the PBM’s



  2. PBM’s

    The pharmacist who goes through all of that education, takes the risk of opening a business, does all of the work related to dispensing drugs, looses money on the transaction. The PBM, which add no value to the equation, still makes a profit.

    The AWP is manipulated by the PBMs which is why you see generic prices change by 25-100% in a year.



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