Prescription drug middlemen took in nearly $1.6 billion in extra revenue on two cancer drugs in less than three years.
Share on linkedin Prescription drug middlemen took in nearly $1.6 billion in extra revenue on two cancer drugs in less than three years, by steering business to affiliated pharmacies, a new Federal Trade CommissionThe findings underscore the degree to which vertical integration and concentration among pharmacy benefit managers allow the companies to influence the drug supply chain, potentially driving up cost to patients.
The consolidation combined with vertical integration with health insurers have allowed companies to pay affiliated pharmacies as much as 40-times higher than the average acquisition cost of drugs. PBMs can steer business away from smaller independent pharmacies, or require unfair contract terms, the report says.
The report "lays out how dominant pharmacy benefit managers can hike the cost of drugs—including overcharging patients for cancer drugs," Khan said in a statement. It used as case studies reimbursement rates and dispensing revenue for two specialty generic drugs: generic Zytiga to treat prostate cancer and generic Gleevec for leukemia from 2020 to part of 2022.Any suggestions from the FTC about policies that limit the use of PBM negotiating tools would instead reward the pharmaceutical industry, leaving American businesses and patients at the mercy of the prices drugmakers set," CVS Caremark said in a statement.
House Energy And Commerce Committee Congress Pharmacy Benefit Management (PBM) Big Pharma Health Care Costs
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