The Federal Trade Commission last week filed a suit accusing the three largest pharmacy benefit managers, or PBMs, of using their market power unfairly to manipulate, and ultimately inflate, insulin prices. Mark Blum, managing director of the PBM Accountability Project, issued the following statement:
“We applaud the Federal Trade Commission’s legal action against the three largest PBMs, known as the 'Big 3,' for their role in imposing skyrocketing insulin costs on patients with diabetes. It is an important step in curbing the anti-competitive, anti-consumer practices of these health insurance middlemen, but it must not be the last one. Continuing action is needed from both regulators and Congress.
“The FTC’s legal suit follows years of investigations and stories that demonstrate how vertical integration of the health insurance industry, which includes PBMs, physicians, medical insurance, pharmacy distribution and offshore group purchasing operations, undermines market competition and drives up prescription drug costs for all Americans.
“Anti-competitive price manipulations by the Big 3 PBMs go well beyond insulin, and causes grievous harm to millions of patients who are forced to make terrible choices between paying soaring costs of life-saving medicines food, rent and other basic human needs. Until lawmakers act, PBMs will continue to profiteer at the expense of the health and wellbeing of vulnerable patients.
“The FTC action should be viewed as a significant step forward in federal-level action that is needed. The FTC’s suit is a well-justified enforcement action against one of the most egregious PBM practices of compelling chronically ill diabetic patients to use more expensive, rather than more affordable, drugs. Yet there is no doubt that regulators and lawmakers need to take additional steps.
“We commend the FTC for taking this legal action and call on Congress to follow suit by passing much-needed PBM-reform legislation that will prohibit categorically the whole spectrum of predatory PBM pricing practices. America needs a transparent and competitive market for prescription drug services that PBMs could provide at a fair market price. Americans deserve affordable access to life-saving medicines free from predatory PBM price manipulation.”
To learn more about the PBM issue and legislative solutions, click here.
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