Following a deadlocked Federal Trade Commission (FTC) vote in February over whether to initiate a study into the business practices of Pharmacy Benefit Managers (PBMs), Sen. Chuck Grassley (R-Iowa) is urging the FTC to find consensus and move forward on a study examining bipartisan concerns about competition within the PBM industry.
“…PBMs operate with little to no transparency, making it very difficult if not impossible to understand the flow of money in the prescription drug marketplace and how PBMs determine the prices for prescription drugs. Recent consolidations between PBMs and insurance providers have resulted in vertical integration whereby a small number of companies now manage the vast majority of prescription drug benefits,” Grassley wrote.
In a letter to FTC Chairwoman Lina Khan, Grassley urges reconsideration of a revised and more targeted study proposal and highlights the bipartisan support for such a move among both FTC commissioners and members of Congress.
“There is widespread bipartisan support for examining PBMs and looking into whether they are causing Americans to pay higher prices for prescription drugs. I hear stories about rising drug costs all the time at my 99 county meetings. A study into the business practices of these intermediaries would provide transparency and insight about possible competitive harms,” Grassley continued.
Grassley is currently the ranking member of the Senate Judiciary Committee, which maintains jurisdiction over parts of FTC’s work and competition policy. The senator has also introduced bipartisan legislation mandating an FTC study of the issue, which was approved in committee by a voice vote.
Previously, as chairman of the Senate Finance Committee, Grassley convened hearings with PBM executives to scrutinize this opaque industry because of its significant role in the prices of prescription drugs.
Original source can be found here
