Alex Tabarrok has an interesting summary of some recent discussions on prescription drugs. He makes a nice point at the end
…especially if PBMs focus on pay for choice rather than restricting choice. I also worry that liability problems will plague PBMs just like they have HMOs and don't forget that the lack of incentive to choose drugs with an eye to cost will get much worse when the new Medicare drug entitlement program kicks in.
I've said it plenty of times on this blog and I'll say it again. Markets aren't always perfect, because the distribution of information isn't perfect. But they are the best we have. When governments intervene, other than to help increase information or include the economic costs of externalities, they usually misalign incentives which just makes things worse.