In Closer Look At PBMs, FTC Faults Them For Driving Up Drug Costs
The agency's sharp criticism of these drug middlemen has not led to lawsuits or other actions, but it might provide Congress and states with incentive to amp up regulations.
The New York Times:
F.T.C. Slams Middlemen for High Drug Prices, Reversing Hands-Off Approach
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.” The regulator’s study signals a significant ramping up of its scrutiny of benefit managers under the agency’s chair, Lina Khan. It represents a remarkable turnabout for an agency that has long taken a hands-off approach to policing these companies. (Abelson and Robbins, 7/9)
The Wall Street Journal:
How Drug Middlemen Keep Beating The System
Drug middlemen, known as pharmacy-benefit managers, have accomplished something rare in Washington: Their business practices have led to a bipartisan consensus of sorts around the need for more regulation. Yet successfully cracking down on the tactics that drive health costs higher won’t be easy. That is because PBMs operate in a highly complex and opaque world where key information is kept from the public. (Wainer, 7/10)
