LD The Federal Trade Commission (FTC) on Tuesday released a report as part of an investigation into pharmacy benefit managers (PBMs), accusing them of profiting at the expense of patients and independent pharmacies, thus contributing to higher drug prices. In the report, the agency noted that the largest PBMs have significant power and influence as they have integrated with some of the leading health insurers and pharmacies, putting unaffiliated pharmacies at a disadvantage. The three largest PBMs processed nearly 80% of total prescriptions dispensed by U.
S. pharmacies in 2023, and the six largest PBMs accounted for more than 90% of the total, the FTC said. Sometimes, they also impact competition by entering into agreements with drug manufacturers to exclude cheaper drugs from formularies in exchange for increased rebates from drugmakers.
The report cited PBMs run by CVS Health ( NYSE: CVS ), UnitedHealth ( NYSE: UNH ), Cigna ( NYSE: CI ), and Humana ( NYSE: HUM ). It was released as part of an ongoing FTC probe launched in 2022 into the industry's business practices. More on Cigna, CVS Health, etc.
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