The U.S. Federal Trade Commission (FTC) is investigating the role of pharmacy benefit managers (PBMs) in rising drug prices. PBMs, which act as middlemen between drug companies and consumers, have consolidated power through years of mergers and acquisitions. The FTC’s report suggests that the three largest PBMs, controlling 79% of the market, have used their position to enrich themselves at the expense of smaller pharmacies and consumers. Hosts Patricia Wu and Jessica Reyes are joined by clinical hypnotherapist, Rene Brent to break down the story on Psychology Behind the Headlines.
Limiting Access to Affordable Pharmaceuticals
The FTC’s findings include evidence of PBMs engaging in practices that limit access to cheaper generic drugs and favor their own affiliated businesses. The PBMs have denied these allegations, claiming that increased regulation would harm consumers and benefit drugmakers.
The Biden Administration’s Efforts
The report comes amid renewed efforts by the Biden administration to lower healthcare costs. The FTC’s investigation is ongoing, but the initial findings suggest that the consolidated power of PBMs may be contributing to the rising cost of prescription drugs in the U.S.
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