
Pharmacists and Manufacturers Rip PBM Practices
Manufacturers are aligning with pharmacists and providers to blame high drug costs and limited patient access on pharmacy benefit managers.
As policy makers and consumer advocates continue to demand reductions in prescription drug prices, manufacturers are aligning with pharmacists and providers to blame high drug costs and limited patient access on pharmacy benefit managers (PBMs). The charges range from using formularies to curb the use of important but expensive medicines, to requiring lengthy procedures for patients to gain coverage of costly treatments.
With Democrats now controlling FTC’s agenda, the Commission has
Independent pharmacists are leading the charge with a call for attention to how PBMs, working with big pharmacy chains, reduce reimbursement and steer patients away from smaller pharmacies. The National Community Pharmacists Association (NCPA) has called on the FTC to investigate these activities and to initiate legal action against PBMs for certain unfair or deceptive business practices.
Leading medical groups similarly blame PBMs for limiting patient access to vital medicines through formulary tiering practices and coverage policies. The
Meanwhile brand manufacturers point to formulary exclusions that steer patients to select drugs from firms offering steep discounts and high rebates, while limiting coverage of many innovative but expensive therapies. The Pharmaceutical Research and Manufacturers of America (PhRMA) cites a
Members of Congress have
As chairman of the Senate Commerce Committee, Cantwell already held a hearing in May on PBM practices and the need for legislation to establish a more equitable system for patients to access needed medicines. The Senate Finance Committee, where Sen. Grassley is the ranking Republican, is also examining these issues, as will relevant House committees. The Biotechnology Innovation Organization (BIO) applauded the Senate measure as well as ongoing FTC efforts to examine the role PBMs play in the biopharma market.
Pharma mergers also face FTC, DOJ scrutiny
In a separate move, the FTC has scheduled a public meeting to assess the impact of pharmaceutical company mergers on competition, innovation, and consumers. The Department of Justice Antitrust Division will co-host with the FTC a two-day workshop June 14 and June 15, 2022, to examine pharma sector market competition and merger remedies and how such actions affect biopharma innovation. This meeting was recommended by the Multilateral Pharmaceutical Merger Task Force, formed in March 2021 by the FTC to gain input on appropriate competition analysis from state attorneys general and officials in Canada, the United Kingdom, and the European Union. The workshop will be webcast each day at
About the author
Jill Wechsler is Washington editor for BioPharm International.
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