AHA today urged the Federal Trade Commission to scrutinize commercial health plans that steer patients to third-party specialty pharmacies in which they have a financial interest. These practices, commonly referred to as “white bagging,” disallow health care providers from procuring and managing the drugs they administer to patients, resulting in significant patient safety concerns, frequent delays in care, and a tremendous administrative burden on hospitals to reconcile these policies on behalf of their patients, AHA wrote, responding to a request for public comments on PBM business practices. 
 
“As large health plans engage in broad vertical integration efforts, including the acquisition of PBMs and specialty pharmacies, the practice of mandated white bagging has increased dramatically,” forcing hospitals and health systems “to navigate substantial supply chain and logistical challenges in order to continue to provide safe and effective care to the patients they treat,” the letter notes.
 
AHA also urged the agency to scrutinize “the impact of PBM-negotiated rebates and other business practices on the 340B drug discount pricing program and overall drug prices and drug price increases.”

Learn more about AHA’s concerns with white bagging policies in this AHA podcast and infographic

Related News Articles

Headline
The AHA Nov. 20 released its Health Care Plan Accountability Update, covering the latest developments in Medicare Advantage, legislation and regulation of…
Headline
The U.S. District Court of the Eastern District of Louisiana Sept. 27 ruled in favor of a LCMC Health and Tulane University partnership, concluding that the…
Headline
The AHA today urged the Federal Trade Commission and Department of Justice not to finalize the draft guidelines describing how the agencies review mergers and…
Headline
AHA urged the Federal Trade Commission to withdraw its proposed changes to the premerger notification rules, form and instructions under the Hart-Scott-Rodino…
Headline
A three-judge panel in federal court last week partially revived a class action lawsuit against UnitedHealth Group subsidiary United Behavioral Health,…
Perspective
In the first quarter of 2023, household debt in America rose to $17.05 trillion, representing a precipitous increase over the last decade. In part, rising debt…