On July 10, 2024, multiple media sources reported that the Federal Trade Commission intends to file suit against the nation’s three largest pharmacy benefit managers over allegations of improper pricing in connection with their negotiations with drug manufacturers that dramatically increased prices for consumers and lined the PBMs’ pockets with lucrative “rebates.”
Tp read the full text of this Duane Morris Alert, please visit the firm website.
Pharmacy benefit managers (PBMs) play a significant role in U.S. drug pricing, yet their existence is little known to those outside of the pharmaceutical and insurance arenas. In an effort to modify one of the largest drivers in increasing drug costs―rebates paid to PBMs by drug manufacturers―the U.S. Department of Health and Human Services on November 20, 2020, published three final rules that, most notably, declared that these rebates are no longer protected by the safe harbors to the anti-kickback statute.
To read the full text of this Duane Morris Alert, please visit the firm website.
