Sen. Grassley Urges FTC Investigation of PBMs

Sen. Chuck Grassley (R-Iowa), ranking member of the Judiciary Committee, urged the Federal Trade Commission (FTC) to examine the business practices of pharmacy benefit managers (PBMs) in a March 9 letter to FTC Chairwoman Lina Khan.

The senator’s request followed a recent 2-2 vote by the FTC commissioners that stymied the expansion of a current study investigating PBMs who collect rebates from drugmakers after negotiating coverage of prescription medicines with drugmakers, insurance providers and Medicare. There wasn’t a tie-breaking vote because one of the commission’s seats is vacant. FTC Chair Khan voted in support of the expanded study.

In the letter, Grassley, mentioned his proposed legislation — the Prescription Pricing for the People Act — introduced April 27, 2021, which would mandate that the FTC conduct a study and report to Congress “on the effects of consolidation and potentially anticompetitive behavior that may impact prescription drug pricing.”

The Senate Committee on the Judiciary reported favorably on the bill in late July, but it failed to advance further.

Read the senator’s letter here: https://bit.ly/37nKD0O.