FTC Report Highlights PBMs' Overcharging for Cancer Drugs

Jul 9, 2024, 02:42 PM

The Federal Trade Commission (FTC) has released an interim report highlighting the significant influence of pharmacy benefit managers (PBMs) on US drug prices. The report reveals that PBMs, which manage prescription drug benefits, have been overcharging for cancer drugs and other medications, leading to increased costs for patients and independent pharmacies. The FTC found that PBMs paid their own mail-order pharmacies up to 200 times more than the price at rival pharmacies for commonly prescribed cancer drugs. The report also criticizes the market consolidation among pharmacies and health insurance companies, which has allowed a few PBMs to dominate the market. The top three PBMs processed nearly 80 percent of the approximately 6.6 billion prescriptions dispensed by US pharmacies in 2023. The FTC's findings suggest that these practices have greatly enriched PBMs at the expense of smaller pharmacies and consumers, warranting further scrutiny and potential regulation. Additionally, the report notes that PBMs took in nearly $1.6 billion in extra revenue on two cancer drugs in less than three years.