FTC Releases Interim Staff Report on Prescription Drug Middlemen
“Report details how prescription drug middleman profit at the expense of patients by inflating drug costs and squeezing Main Street pharmacies”
Good to see the FTC (and possibly Congress) taking aim at the monopoly power of PBMs and vertically integrated health care systems in which they operate. At one point, PBMs were touted as bargaining agents for employer health plans and government programs that would help lower costs. Instead, they have become integrated into vertical conglomerates that exploit health care buyers and patients. Bottom line: Bargaining agents for buyers should not be getting payments from sellers that steer them to more costly options. The result has been a massive screwing of the American public and dead-weight loss for the economy.
Inside the Mafia of Pharma Pricing – Matt Stoller/BIG
“4% of all the money in America flows through a few mafia-like health care conglomerates. The FTC just released a ground-breaking report on how they operate. And it is gearing up to sue.”
“For decades, PBMs operated in the shadows. But the passage of Obamacare changed the dynamic of health care, because it capped the profits of health insurance companies. To get out from under this cap, insurers began vertically integrating into different areas, and in the 2010s, every major PBM turned into an arm of a conglomerate.”
PBMs, the Brokers Who Control Drug Prices, Finally Get Washington’s Attention – KFF Health News