FTC Scrutiny Of Profit Seeking In Drug Supply Chain In Fact-Finding Mode

Agency hears from experts on whether PBMs and group purchasing organizations operate under misaligned incentives.

Man Controlling Trade statue in front of the Federal Trade Commission Building
Which Is the Pharmaceutical firm and which is the PBM? • Source: 'Man Controlling Trade' statue in front of the Federal Trade Commission Building

The US Federal Trade Commission wants to understand the current state of play as it considers whether prescription drug contract and purchasing practices by pharmacy benefit managers and group purchasing organizations (GPOs) are driving anti-competitive behavior in the health care system.

The agency convened panels of experts at a Nov. 8 workshop to explain how the intermediaries work in the drug supply chain. Discussions explored whether the current rebate demands by PBMs and the fact that GPO fees are paid by manufacturers may be driving up costs for patients and payers

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