FTC Report Criticizes Pharmacy Benefit Managers for Inflating Drug Prices

The Federal Trade Commission accuses PBMs of anti-competitive practices that increase patient costs and harm independent pharmacies.

PBMs control nearly 80% of U.S. prescription drug distribution, leading to significant market power.
The FTC alleges PBMs steer patients to affiliated pharmacies, often resulting in higher out-of-pocket costs.
Rebates from drug manufacturers to PBMs can exclude cheaper generics, raising prices for consumers.
Independent pharmacies struggle due to complex and opaque PBM contracts, contributing to closures.
The FTC is considering legal action against major PBMs for their role in driving up medication costs.