The Federal Trade Commission will launch an inquiry into the prescription drug middleman industry, requiring the six largest pharmacy benefit managers to provide information and records regarding their business practices within 90 days, the agency announced today. FTC said the inquiry will scrutinize the impact of vertically integrated PBMs on the access and affordability of prescription drugs. 

AHA last month urged the FTC to investigate certain practices by health plans and pharmacy benefit manager, commonly referred to as “white bagging,” which disallow health care providers from procuring and managing the drugs they administer to patients.

“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,” AHA told the agency. 

Related News Articles

Headline
The AHA May 21 voiced support to Senate and House sponsors of the Improving Seniors’ Timely Access to Care Act, legislation that would reduce the variation in…
Headline
The Department of Health and Human Services May 20 announced it has identified specific pricing targets for pharmaceutical manufacturers to meet to satisfy…
Headline
As Congress weighs significant changes and cuts to Medicaid, the AHA today hosted a Capitol Hill briefing for congressional staff featuring hospital and health…
Headline
The House Budget Committee May 16 voted 21-16 against advancing the fiscal year 2025 budget reconciliation bill, with five Republicans joining all Democrats in…
Perspective
Public
Three key House committees — Energy and Commerce, Ways and Means, and Agriculture — after long debates and discussions this week advanced their portions of a…
Headline
The Centers for Medicare & Medicaid Services May 12 released draft guidance for the third round of negotiations for the Medicare Drug Price Negotiation…