Report: PBMs may be profiting by inflating drug costs, squeezing pharmacies

The New York Times (7/9, Abelson, Robbins ) says, “The Federal Trade Commission on Tuesday sharply criticized pharmacy benefit managers, saying in a scathing 71-page report that ‘these powerful middlemen may be profiting by inflating drug costs and squeezing Main Street pharmacies.’” FTC Chair Lina Khan “said the agency’s inquiry had shown ‘how dominant pharmacy benefit managers can hike the cost of drugs – including overcharging patients for cancer drugs.’” Khan “went on to say that the agency found evidence of ‘how PBMs can squeeze independent pharmacies that many Americans – especially those in rural communities – depend on for essential care.’”

Reuters (7/9, Aboulenein, Godoy , Wingrove, Niasse) reports, “The consolidation of pharmacies and health insurance companies through years of deal making has led to a handful of pharmacy benefit managers exercising outsized influence over prescription drug prices, the U.S. Federal Trade Commission said on Tuesday.” The agency “argues the three biggest PBMs – managing 79% of U.S. prescription drug claims – have greatly enriched themselves at the expense of smaller pharmacies and consumers, according to an interim staff report calling for possible greater regulation.”

The Hill (7/9, Weixel ) says, “Six of the largest PBMs control nearly 95% of all prescriptions, according to the report.”

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Posted in In The News.