The Federal Trade Commission (FTC) recently released an interim report showing how pharmaceutical benefit managers (PBMs) «are profiting at the expense of patients by raising drug costs and squeezing Mainstream pharmacies. Street.»
According to the FTC, these middlemen, who handle prescription drug benefits for health insurers, employers, and others, drive up drug prices and put pressure on independent pharmacies.
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The report shows that six large companies handle almost 90% of all prescriptions in the US. Because they have more control, they can set higher prices for medicines, which makes it difficult so that patients can buy their medicine. As a result, nearly 30 percent of Americans have reported skipping or misdiagnosing their medications.
FTC Chairwoman Lina M. Khan said of the report that «The details of how PBMs can squeeze out independent pharmacies that many Americans – especially in rural areas – rely on for care important. The FTC will continue to use all of our resources and regulators to scrutinize the dominant players in the health care markets and ensure that Americans have access to affordable health care.»
Mark Cuban, a billionaire businessman and owner of the Dallas Mavericks, quickly responded to the FTC’s findings. In a tweet, he expressed his lack of surprise:
«Is anyone surprised by this? Please share with every CEO, CFO, and HR person you know. If you are a shareholder or analyst on Wall Street, ask the companies of your portfolio who their PBM is, not how bad they are.. This should be a question on every quarterly earnings call. How much can I add to convert to PBM?’
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The FTC investigation began in 2022 and targets major PBMs, such as Caremark Rx, Express Scripts, and OptumRx. The report shows that the top three PBMs processed nearly 80% of the 6.6 billion prescriptions filled in 2023, while the top six processed more than 90%. Because these big companies have merged and consolidated so much, they now have the power to control how Americans can get and pay for their prescription drugs, according to the report.
Additionally, they say PBMs tend to favor their own drugs, which can drive up drug costs for patients. Independent pharmacies are bound by unclear and risky contracts, making it difficult for them to compete. PBMs and drug manufacturers sometimes exclude cheaper generic drugs in exchange for higher discounts from brand-name drugs.
See Also: Many are surprised by Mark Cuban’s advice for lottery winners: Money or year?
Mark Interest in Cuba
In January 2022, Mark Cuban started his own pharmacy, Mark Cuban Cost Plus Drug Company. His pharmacy’s goal is to provide affordable medicine by cutting out middlemen such as pharmacy benefit managers (PBMs) and providing drugs at low, transparent prices.
Knowing his background, it is not surprising that he is interested in this FTC report. Her pharmacy’s mission is to make drugs affordable, and she wants to raise awareness of these unfair practices and encourage businesses and investors to ask tough questions about how PBMs affect drug costs. .
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This Article Patients Pay the Price as Drug Middlemen Profit, Says FTC Report. Mark Cuban’s Take: ‘Anyone Surprised By This?’ originally appeared on Benzinga.com
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