Prescription Drug Trade-Off: Lower Premiums, Higher Out-of-Pocket Costs in Vertical Integration

Ownership of the prescription drug supply chain by a single large company can lower insurance premiums for consumers but leads to higher out-of-pocket costs for many, according to a May 2026 audit report. 

The audit conducted by the Office of Inspector General for the Department of Health and Human Services studied the impact of “vertical integration” on prescription drug costs for the Medicare Part D program.