FTC Expands Study into Prescription Drug Intermediaries

Group purchasing organizations are required to provide information on business practices.

The Federal Trade Commission (FTC), as part of its ongoing study of pharmacy benefit managers (PBMs) and their impact on prescription drug accessibility and affordability, issued a compulsory order to another group purchasing organization (GPO) that negotiates drug rebates on behalf of PBMs.

The order mandates that the “GPO entity” provide information and records related to its business practices. This action followed previous compulsory orders issued to the six largest PBMs and two PBM-affiliated GPOs.

The commission’s inquiry seeks to uncover the practices of these managers and purchasing organizations. Concerns include the fees that are charged, the manipulation of patients toward PBM-owned pharmacies, complex reimbursement methods, and negotiations with drug manufacturers that impact the consumer prescription cost.

As the Lord Leads, Pray with Us…

  • For Chair Lina Khan to seek God’s guidance as she heads the FTC.
  • For members of the commission as they request information to ensure consumer protection.
  • For both legislative and executive officials as they address the cost of prescription drugs.

Sources: Federal Trade Commission, The Pharma Letter


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