The Federal Trade Commission this month released an “interim” report concerning pharmacy benefit managers, administrative service providers that negotiate pricing arrangements with pharmaceutical manufacturers for health plans, develop reimbursement terms for pharmacies and create formularies. The FTC alleges these PBMs have uniquely abused market conditions, creating anti-competitive effects.
But the report did not come without opposition. FTC Commissioner Melissa Holyoak raised concerns about how the report does not adhere to the rigorous standards the FTC is supposed to follow to remain driven by substance/empirical evidence. Her valid concerns speak to broader issues about how the FTC has strayed from its once rigorous, data-driven analyses standards and requires reform.