July 25, 2024
Washington, D.C. – Following a robust nationwide outreach campaign from AMAC Members, the Federal Trade Commission (FTC) has released an interim report highlighting potentially unethical practices on the part of pharmacy benefit managers (PBMs) that could be forcing patients to pay more for prescription drugs while limiting patient choice.
PBMs are private intermediaries who are supposed to negotiate with drug manufacturers and pharmacies on behalf of insurance providers to deliver lower costs for patients. However, in recent years monopolistic practices and a lack of transparency have created cause for concern that PBMs may be abusing their position for their own gain while patients foot the bill.
From March through May 2022, the FTC opened a web page seeking comments on PBMs, likely anticipating hearing from doctors and patients. A total of 24,000 comments were submitted – 17,000 of them from AMAC members following a series of calls-to-action from AMAC Action.
Specifically citing the volume of comments received, the FTC announced an investigation into the business practices of the six leading PBM firms in the country. The agency’s interim report, released on July 9, noted that, “amidst increasing vertical integration and concentration,” PBMs “may be profiting by inflating drug costs and squeezing Main Street pharmacies.”
AMAC Action Senior Vice President Andy Mangione welcomed the results of the interim report saying, “We thank the FTC for conducting this investigation. The report’s findings validate our efforts seeking transparency and free-market reforms for pharmacy benefit managers that will likely lower drug costs for all Americans. We look forward to continuing this mission on behalf of the AMAC membership.”
When it comes to an issue as important as prescription drug price negotiations, patients deserve accountability and transparency. AMAC Action is proud to be an advocate for our members and hold PBMs to a high ethical standard for the critical role that they play in the drug supply chain.
Following the FTC investigation, the House Oversight and Accountability Committee also announced its own inquiry in an encouraging sign of bipartisan cooperation on this important issue. According to The Wall Street Journal, their report found that, “The drug middlemen that promise to control costs have instead steered patients toward higher-priced medicines and affiliated pharmacies.”
The House committee specifically unearthed emails from prominent PBMs “discouraging discussion” of using lower-priced alternatives to certain drugs in order to secure more kickbacks for PBMs.
Both Congress and the FTC have promised further action on this issue in the months ahead. AMAC Action will continue to press government officials for progress on this front and keep members informed on the latest developments.
You can read the entire FTC interim report HERE.
You can read the House Oversight Committee press release on its PBMs hearing HERE.
For media inquiries please contact Alyssa Lopresti: [email protected], 631-337-0106.
