The Federal Trade Commission (FTC) has just released an interim report showing "pharmacy managers (PBMs) profit at the expense of patients by inflating drug prices and undermining Main Street pharmacies." ".
According to the FTC, these middlemen, who manage prescription drug benefits for health insurers, employers and others, drive up drug prices and put pressure on independent pharmacy.
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The report shows that six large companies control 90% of all drugs in the United States. Because of their extensive control, they can set high drug prices, making it difficult for patients to buy drugs. As a result, nearly 30% of Americans reported skipping doses or splitting their medications.
FTC Chairwoman Lina M. Khan said of the report that "It details how PBMs can corner the independent pharmacies that many Americans — especially those in rural areas — depend on for care. essential. consider the key players across the health care market and ensure that Americans have access to health care."
Mark Cuban, billionaire entrepreneur and owner of the Dallas Mavericks, quickly responded to the FTC’s findings. In a tweet, he expressed his dismay:
"Anyone surprised by this? Please share with every CEO, CFO, and HR person you know. If you’re an executive or Wall Street analyst, ask your portfolio company who their PBM is , not that they are being removed, but it should be a quarterly question 'How much can you add to the bottom line if you convert to PBM?'
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The FTC’s investigation began in 2022 and targeted the largest PBMs, such as Caremark Rx, Express Scripts, and OptumRx. The report shows that the top three PBMs handled nearly 80% of the 6.6 billion prescriptions filled in 2023, while the top six PBMs filled more than 90%. Because these big companies have consolidated and consolidated so much, they now have a lot of control over whether Americans can get and afford prescription drugs, according to the report.
Additionally, they say PBMs tend to sell their products, which can drive up drug costs for patients. Private pharmacies are stuck with unclear and damaging contract terms, making it difficult for them to compete. PBMs and drug manufacturers sometimes discount cheaper generic drugs because of higher reimbursements for brand-name drugs.
See also: Many were surprised by Mark Cuban’s advice to lottery winners: Money or age?
Mark Cuban’s interest
In January 2022, Mark Cuban started his own store, the Mark Cuban Cost Plus Drug Company. The goal of his pharmacy is to provide affordable medicine by eliminating intermediaries such as pharmacy benefit managers (PBM) and offering medicines at low and transparent prices.
Knowing his background, it’s no wonder he’s so interested in this FTC report. The pharmacy’s goal is to make drugs more affordable, and it wants to draw attention to these unfair practices and encourage companies and investors to ask tough questions about the impact. of PBMs on drug costs.
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