The Federal Trade Commission declined to investigate how the business practices of pharmacy benefit managers affect drug prices.
In a split 2–2 vote, the FTC failed to get the majority needed on Monday to approve a motion to study the pharmacy benefit manager industry, which is responsible for negotiating drug prices with pharmaceutical companies. Critics argue pharmacy benefit managers have been responsible for increased list prices for drugs.
ARE NEGOTIATORS ‘FIGHTING TO LOWER DRUG PRICES’ ACTUALLY MAKING THEM HIGHER?
“Two members of the FTC just let the worst actors in the market off the hook. After hearing hours of testimony by community pharmacists and patients, all of whom painted the same shocking picture about PBM abuse, and not a single witness there to defend the PBM industry, it is inexplicable that two members of the commission could vote against the study. Their decisions could not possibly have been based on what was heard today,” the National Community Pharmacists Association said in response to the FTC vote.
But the Pharmaceutical Care Management Association, which represents PBMs, argued the managers benefit consumers.
“We look forward to working with Congress and the Administration on ways to increase affordability and access to prescription drug for all patients. Drug manufacturer price setting is the root cause of high drug costs, putting a strain on patients and forcing them to make difficult decisions about their drugs,” PCMA said. “PBMs are holding drug companies accountable by relentlessly negotiating the lowest possible cost on behalf of patients, and are driving and delivering local competition that patients are demanding.”
The motion would have required top pharmacy benefit manager companies to turn over documents so the FTC could investigate their business practices. This includes practices that affect drug prices and practices that might disadvantage independent pharmacies, according to the FTC’s agenda for Thursday’s meeting.
A spokesperson for the FTC told the Washington Examiner she anticipates “the staff will go back to the drawing board and look for a proposal that the majority can agree on.” The two dissenters wanted the study to be broader and include the potential effect of pharmacy benefit manager practices on out-of-pocket costs for consumers, according to Politico reporter Megan Wilson.
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Pharmacy benefit manager companies have drawn bipartisan scrutiny over their business practices. Some healthcare experts have argued pharmacy benefit managers profit off increased list prices for drugs through various fees that are often tied to the list price. Pharmacy benefit managers argue that they have been fighting to reduce net prices for consumers and that they have saved the public billions of dollars on their annual drug costs.
