<< An obvious question is: what is a pharmacy's incentive for this kind of discount? >>

Crazy large margins versus the wholesale price of the drug.

In the case of the $1240/yr insurance company price, Mark Cuban's Cost Plus Drug Company disclosed a $425 wholesale price. There are 6 or 7 generic manufacturers for the drug -- competition keeps wholesale prices down.

CVS/Caremark is my insurer's captive PBM. Their annual sales volume is probably 100 times larger than Mark Cuban's operation. I'm sure they're paying a lot less than his $425 wholesale price. Good Rx is a much smaller player and they're still making money charging me $360 for a year's supply.

The insurance company price of $1240 is simple price gouging. They know that very few people are going to price shop on Good Rx, so they can get away with charging it.

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