Official congressional records and announcements

FTC Report Reveals PBMs Overcharging for Cancer Drugs by 200 Times

Jul 9, 2024, 01:18 PM

The Federal Trade Commission (FTC) has released an interim report highlighting the significant influence of pharmacy benefit managers (PBMs) on U.S. drug prices. According to the report, PBMs have been overcharging for commonly prescribed cancer drugs, paying their own mail-order pharmacies up to 200 times more than the price at rival pharmacies. The consolidation of pharmacies and health insurance companies has allowed a few PBMs to dominate the market, managing 79% of U.S. prescription drug claims. This market power, described as 'enormous,' has enabled PBMs to profit at the expense of patients, independent pharmacies, and consumers. In 2016, PBMs had a combined revenue of $456 billion, which grew to over $1 trillion by 2023. The FTC's findings suggest that these practices warrant further scrutiny and potential regulation.