WASHINGTON — The Federal Trade Commission (FTC) has published an interim report highlighting the impact of pharmacy benefit managers (PBMs) on drug prices and independent pharmacies. The report reveals how PBMs, which manage nearly 95% of all prescriptions in the U.S., profit by inflating drug costs and imposing tough terms on small pharmacies.
FTC Chair Lina M. Khan stated that dominant PBMs hike drug prices, including cancer drugs, and squeeze independent pharmacies that many Americans rely on. The report indicates that PBMs control drug availability and prices, with nearly 30% of Americans rationing or skipping doses due to high costs.
The report stems from the FTC’s ongoing inquiry into the PBM industry, launched in 2022. It shows that PBMs have become highly concentrated and vertically integrated with major health insurers and retail pharmacies. The top three PBMs processed almost 80% of U.S. prescriptions in 2023, while the top six processed over 90%.
The report also finds that PBMs self-prefer their affiliated businesses, disadvantaging smaller pharmacies and raising drug costs. Unfair contract terms imposed by PBMs make it difficult for independent pharmacists to understand their compensation.
The FTC urges PBMs to comply with its orders and promises to provide updates as more information becomes available. The Commission voted 4-1 to issue the interim report.
For more details, visit the FTC website and follow their updates on social media.