APCI Applauds FTC Findings on Pharmacy Benefit Managers

BESSEMER, Ala., July 9, 2024 /PRNewswire/ -- Officials with American Pharmacy Cooperative, Inc. (APCI) lauded a U.S. Federal Trade Commission report released today which found that the country's largest pharmacy benefit managers (PBMs) are raising prescription drug prices for patients and putting America's locally-owned pharmacies out of business.

PBMs – middlemen in the prescription supply chain – were found to "be profiting by inflating drug costs and squeezing Main Street pharmacies," the report stated. In a statement accompanying the report, FTC Chair Lina Khan said that the report "lays out how dominant pharmacy benefit managers can hike the cost of drugs — including overcharging patients for cancer drugs." Khan added that the report "also details how PBMs can squeeze independent pharmacies that many Americans — especially those in rural communities — depend on for essential care."

"We applaud the hard work the FTC has done for the past two years in its investigation into abusive PBM practices and are proud to have had the opportunity to provide insights into PBM practices to their team," said APCI CEO Tim Hamrick. "Today's report details what we have been saying for years: PBMs increase prescription prices for patients; cost taxpayers billions of dollars each year; and largely reimburse independent pharmacies below cost for medications, forcing locally-owned pharmacies to shutter their doors and reduce access for patients across the country.

"We look forward to continuing to work with the FTC and members of Congress to enact legislation that will protect patients, taxpayers, and locally-owned pharmacies from further abuse from these corporate middlemen," Hamrick added.

The FTC launched its study into PBM practices in June of 2022, and the commission notes that "several of the PBMs that were issued orders have not been forthcoming and timely in their responses, and they still have not completed their required submissions, which has hindered the Commission's ability to perform its statutory mission," leading to the publication of the interim report.

"We hope that this report will compel Congress to act decisively to rein in PBM abuses," said Greg Reybold, APCI's Vice President of Healthcare Policy. "The status quo of large PBM unfair practices driving up drug costs and driving independent pharmacies to the brink must end. For that to happen, we need the FTC to take enforcement action and for Congress to pass sweeping PBM reform that takes away the ability of PBMs to set drug prices and to prey on patients, pharmacies, and taxpayers."

About APCI

APCI is a cooperative of independently owned community pharmacies in 31 states. Established in 1984 and headquartered in Bessemer, Ala., APCI is recognized as a leader in the fight for prescription drug pricing transparency and reform.

SOURCE American Pharmacy Cooperative, Inc.