FTC Report Accuses PBMs of Inflating Drug Costs

The Federal Trade Commission (FTC) has released a critical interim report highlighting how dominant pharmacy benefit managers (PBMs) like CVS Caremark, Express Scripts, and OptumRx inflate drug prices and harm independent pharmacies. The report indicates that these PBMs manage nearly 80% of U.S. prescriptions and wield significant power over drug pricing and availability, often favoring their own pharmacies. FTC Chair Lina Khan emphasized that these practices lead to higher costs for patients, particularly for essential drugs like cancer medications. PBMs have been accused of engaging in exclusionary practices and imposing unfair contractual terms on independent pharmacies, which are especially detrimental in rural areas. The report has faced criticism from PBM trade groups who claim it lacks empirical evidence and is based on anecdotes. The FTC's findings could lead to increased regulatory scrutiny and potential legislative action to curb PBM practices.