NW Kentucky News

House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) today expressed approval of the Federal Trade Commission's (FTC) recent actions against the three largest pharmacy benefit managers (PBMs) and their group purchasing organizations. The FTC's measures address anticompetitive tactics and rebate practices that are contributing to the rising cost of insulin drugs.

“Today’s action by the FTC is a direct result of the House Oversight Committee’s investigation that has exposed PBMs’ anticompetitive tactics driving up the cost of prescription drug prices for Americans and jeopardizing patient care," said Comer. "Our investigation, which culminated in a report with our findings and recommendations, found PBMs have largely operated in the dark and abused their position as middlemen to line their own pockets by passing on costs to patients. These self-benefitting tactics raise prescription drug prices, like insulin, undermine community pharmacies, and harm Americans who need access to life-saving medication. Congress and states must implement legislative reforms to increase the transparency of the PBM market and the House Oversight Committee will continue to do its part to ensure Americans have access to affordable medication.”

The House Oversight Committee has highlighted PBMs' anticompetitive practices while proposing solutions aimed at making prescription drugs more affordable for Americans.

At the start of the 118th Congress, Chairman Comer initiated an investigation into PBMs' pricing strategies that potentially jeopardize patient care, undermine local pharmacies, and elevate prescription drug prices. This led to three hearings where community pharmacists, a medical oncologist, a transparent PBM representative, members of Congress, and witnesses discussed how PBMs' practices affect costs and patient care.

During these hearings:

- Community pharmacists detailed how PBMs' strategies at multiple levels of payment and supply chains are increasing consumer costs.

- Members and witnesses discussed how PBMs have monopolized the pharmaceutical marketplace with anticompetitive practices detrimental to patient health.

- PBM chief executives were questioned about their roles in rising prescription drug costs.

In one hearing involving PBM chief executives, Rep. Buddy Carter shared an incident where CVS Caremark initially denied a lifesaving drug to his constituent Mattie but approved it following public exposure during the hearing.

The House Oversight Committee released a report detailing how PBMs inflate prescription drug costs for financial gain while interfering with patient care. The report calls for legislative reforms from Congress and states to enhance transparency within the PBM market.

Chairman James Comer has also urged CEOs from CVS Caremark, Express Scripts, and Optum Rx to amend statements made during their testimonies before the committee.

Furthermore, the committee passed the DRUG Act. This legislation imposes requirements on PBMs contracting with carriers offering health benefits plans under the Federal Employees Health Benefits program. It aims to de-link PBM profits from rebates and fees as part of efforts to reduce prescription costs.