U.S. Senator Josh Hawley | Official U.S. Senate headshot
U.S. Senator Josh Hawley | Official U.S. Senate headshot
Senators Josh Hawley and Elizabeth Warren, along with Representatives Diana Harshbarger and Jake Auchincloss, have urged the Federal Trade Commission (FTC) to release a second interim report on pharmacy benefit managers (PBMs). The request was made in a letter sent ahead of the FTC's Open Commission Hearing scheduled for January 14, 2025.
The legislators highlighted the evolving role of PBMs. Initially established to manage prescription drug benefits for health plans by negotiating with drug manufacturers and setting up pharmacy networks, PBMs have now become "giant, vertically-integrated conglomerates" that control significant parts of the drug coverage chain.
In response to market concerns, the FTC initiated an inquiry into PBM practices in 2022. This led to an interim staff report revealing how major PBMs use their size to impose "lopsided and unilateral contracting practices," affecting independent community pharmacies. The report also noted instances where patients were charged excessive out-of-pocket costs beyond the actual price of their medications.
The lawmakers emphasized that "the FTC’s interim report helped inform various bipartisan proposals to rein in abuses in the PBM market." They believe a second report would provide further insights beneficial for legislative efforts as Congress outlines its priorities.
Senator Hawley has been advocating for patient-first policies and accountability from PBMs. Together with Senator Warren, he introduced the Patients Before Monopolies Act aimed at preventing PBMs from owning pharmacies and inflating prescription drug prices.
The full text of their letter is available online and details their appeal to the FTC commissioners:
"We write in advance of the Federal Trade Commission’s (FTC’s) Open Commission Hearing on Tuesday, January 14, 2025, to urge you to vote in support of issuing a second interim staff report on pharmacy benefit managers (PBMs)."
The legislators concluded by urging swift action from the FTC: "We expect a second interim report will shine further light on the industry that will be invaluable to legislators as the policy priorities of the 119th Congress take shape."
Signed,
Josh Hawley
United States Senator
Elizabeth Warren
United States Senator
Jake Auchincloss
Member of Congress
Diana Harshbarger
Member of Congress
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