FTC Report Accuses Major Pharmacy Benefit Managers of Inflating Drug Prices
A Federal Trade Commission (FTC) report has revealed that the three largest pharmacy benefit managers (PBMs)—UnitedHealth Group's OptumRx, CVS Caremark, and Cigna's Express Scripts—exploited the healthcare system by significantly marking up drug prices, earning $7.3 billion in additional revenue from 2017 to 2022. This markup primarily affected specialty generic medicines used for life-threatening conditions, often inflating prices by hundreds or even thousands of percent.
The report highlights how these practices reflect broader issues within the U.S. healthcare system, which is known for high costs without corresponding improvements in patient outcomes. Critics have pointed to a lack of transparency and efficiency as reasons for the exorbitant spending. The investigation, initiated under outgoing FTC chair Lina Khan, has faced pushback from the accused companies, which argue that the data presented is misleading and selectively focused on generics rather than branded drugs.
As Congress investigates these practices further, independent lawmakers like Senator Bernie Sanders are emphasizing the urgent need for reform in the PBM industry, which has long been criticized for its role in escalating drug costs for patients, employers, and insurers alike.
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