The Hidden Math Behind Drug Pricing: Why Patients Pay More Than They Should

In this episode, Michael Grosberg, VP of Product Management at Model N, breaks down the complex drug pricing ecosystem—revealing how rebates, PBMs, and outdated pricing models shape what patients actually pay.

You’ll learn how Pharmacy Benefit Managers (PBMs) really operate, why list prices are misleading, and how pricing negotiations impact patient access. Michael also unpacks the mechanics behind patient assistance programs, the role of compounding and independent pharmacies, and how emerging technology can bring transparency and efficiency to a broken system.

Whether you’re in life sciences, healthcare tech, or just want to understand why your prescription costs what it does—this is a must-listen conversation.

🎙️ Guest: Michael Grosberg | VP of Product Management at Model N
🔗 Connect with Michael Grosberg: LinkedIn
🔗 Model N LinkedIn
🔗 Model N
🔗 Drug Channels Institute 

📌 Chapters:
00:00 Introduction to Pharmaceutical Pricing Dynamics
03:00 The Role of PBMs in Drug Affordability
06:13 Challenges with GLP-1 Medications and Independent Pharmacies
09:01 Understanding Drug Pricing and Stakeholder Dynamics
11:55 The Impact of List Prices on Patient Costs
15:05 Innovative Approaches to Healthcare Pricing
18:01 Patient Assistance Programs and Their Implications
20:44 The Role of Technology in Pharmaceutical Pricing
23:54 The Need for Transparency in Drug Pricing
26:59 Resources for Further Learning on Drug Pricing

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For transcripts, check out the podcast website - www.lifesciencespod.com