Firms that manage drug benefits, which promise to keep a lid on high drug costs, instead steer patients away from less expensive medicines and overcharge for cancer therapies, Federal Trade Commission investigators found.
The FTC, in a report released Tuesday, detailed a number of actions that it said large pharmacy-benefit managers use to boost their profits and increase the spending of the health plans and employers that hired them to control costs. The actions can also lead to higher outlays for patients at the pharmacy counter, the agency said.
The findings follow a two-year investigation into the firms, known as PBMs, and calls from some lawmakers to rein in the firms’ business practices.
FTC Chair Lina Khan said the agency planned further scrutiny of big PBMs with the goal of making healthcare affordable. “Dominant pharmacy-benefit managers can hike the cost of drugs—including overcharging patients for cancer drugs,” she said.
PBMs are a paradigmatic example of how a middleman meant to reduce costs and enhance efficiency becomes so bloated and powerful that it adds to costs and reduces efficiency. Great to see FTC addressing this issue!https://t.co/q0s3VC638W
— Kate Judge (@ProfKateJudge) July 9, 2024