The Federal Trade Commission is backing away from its past advocacy statements for pharmacy benefit managers after a change in "current market realities."
The FTC published nine advocacy letters for PBMs between 2004 and 2014, but the Commission discouraged using its past statements and studies because they "may no longer accurately reflect the current PBM industry," the FTC said June 20.
PBMs act as middlemen between drug companies and payers to negotiate pharmaceutical prices. The industry has long been criticized for its unclear business practices, and critics say PBMs hike up drug prices and steer patients to PBM-owned pharmacies.
In June 2022, the FTC opened an investigation into the six largest PBMs, which account for 92 percent of the PBM market. Another federal investigation is underway, and multiple bills seeking to restrict the PBM are trudging through Congress.
The FTC said it is reevaluating former statements that opposed transparency and disclosure requirements for PBMs. The June 20 statement is in reaction to "PBMs' continued reliance on older FTC advocacy materials," the Commission said.