01/26/2025
Drug Prices
FTC publishes second report on PBM impacts on drug prices
On Jan. 14, the Federal Trade Commission (FTC) released its second interim staff report on drug middlemen and their impact on prescription drug prices and access. The FTC commissioners voted unanimously to release the bipartisan report, which focuses on pharmacy benefit manager (PBM) influence over specialty generic drugs. The report found that the “big three” PBMs—Caremark (CVS), Express Scripts, and Optum—marked up numerous specialty generic drugs by hundreds or thousands of percent, resulting in $7.3 billion in revenue over the study period. The markups impacted numerous generic specialty drugs, such as treatments for cancer, HIV and numerous others to treat serious diseases and conditions. The report also found that PBMs reimbursed “affiliated pharmacies”—usually those considered to be controlled or owned by the PBM—at higher rates on nearly every drug examined in the report than they reimbursed unaffiliated pharmacies.