FTC’s Reported Plan to Sue PBMs Over Rebates Raises Eyebrows

The Federal Trade Commission (FTC) on July 9 released a new report stemming from its investigation into the business practices of PBMs — and on the next day, the Wall Street Journal and other news outlets reported the antitrust agency is on the verge of filing a lawsuit against the country’s largest PBMs over their business practices related to the rebates they negotiate with drug manufacturers for products including insulin. The FTC reportedly is concerned that the lure of high rebates is causing PBMs to steer patients toward higher-cost drugs. 

The FTC has not yet confirmed the WSJ report, which cited people familiar with the matter. But one expert says that the FTC needs to be careful about the way it treats rebates.