Blue Shield of California CEO: PBMs need to 'fundamentally' change

Blue Shield of California shocked a lot of people when it announced it was going to drop CVS Health (CVS) as its main pharmacy benefit manager (PBM) and instead go with companies like Amazon Pharmacy (AMZN) and Mark Cuban's Cost Plus Drugs. Blue Shield of California CEO Paul Markovich tells Yahoo Finance Live the current system is designed to "maximize the profit of the participants as opposed to the quality, cost effectiveness, and convenience of consumers." Markovich says "PBMs, as they exist, clearly need to change and change pretty fundamentally," adding that "incentives and all of the behaviors that come along with it, make drugs highly and unsustainably inflationary."