Just days after releasing an interim report blaming pharmacy benefit managers (PBM) for high prescription drug prices, the Federal Trade Commission (FTC) is reportedly prepared to take the industry to court.
The Wall Street Journal reports the FTC plans to sue the three largest PBMs, claiming they use anti-competitive tactics when negotiating drug prices and promote more expensive name brand drugs over cheaper generics.
The Journal’s exclusive report cites “people familiar with the matter” who say the complaint will also take aim PBM rebates paid to major drug manufacturers. PBMs are generally middlemen in prescription drug distribution. Their role is to manage prescription-drug transactions for insurers and employers and negotiate discounts with drug manufacturers.
According to the Journal, the suit will target UnitedHealth Group’s UNH, OptumRx and Cigna Group’s Express Scripts.
FTC interim report
Earlier this week the FTC issued an interim report on the cost of prescription drugs that suggests that PBMs negatively affect the accessibility and affordability of prescription drugs.
The interim staff report is part of an ongoing investigation launched in 2022 and details how the six largest PBMs have positioned themselves to manage nearly 95% of all prescriptions filled in the United States.
The Pharmaceutical Care Management Association (PCMA), the industry group representing PBMs, takes issue with the report, saying it falls “far short” of being a definitive, fact-based assessment of PBMs or the prescription drug market.