In July, the Federal Trade Commission (FTC) released its interim staff report on the impact pharmacy benefit managers (PBMs) have on the accessibility and affordability of prescription drugs. In a new insight, Director of Competition Policy Fred Ashton walks through the report’s findings and considers its failings and missed opportunities.

Key points:

• The findings of this two-year-long investigation largely focused on the vertical integration and concentrated market structure of the industry and led the staff to conclude that PBMs “may be profiting by inflating drug costs and squeezing Main Street pharmacies.”
• Like the FTC’s grocery supply chain study released in March, the PBM report lacked sufficient research and quantitative analysis and failed to consider competitive and consumer effects.
• The study’s various deficiencies may lead the agency to pursue meritless enforcement actions that increase costs for consumers.

Read the analysis