House Oversight Committee Holds Hearing Today to Examine the “Anticompetitive” Practices of the Largest PBM Companies; FTC Issues Scathing New Report on PBMs
MONTVALE, N.J., July 23, 2024– EmpiRx Health, the leading clinically-driven PBM company, today announced its strong support of the growing efforts by Congress and the Federal Trade Commission to rein in the largest PBM companies and their “anticompetitive” practices that have contributed to rising prescription drug costs and hurt America’s community pharmacies. The House Committee on Oversight and Accountability is holding hearings today to investigate how the big three PBMs have exploited their size and influence to expand their profits at the expense of patients and the organizations that sponsor pharmacy benefits plans.
In announcing today’s hearings, Oversight and Accountability Committee Chairman James Comer (R-Ky) said: “Both Republicans and Democrats on the House Oversight Committee have sounded the alarm over anticompetitive tactics deployed by Pharmacy Benefit Managers and their role in rising drug prices. Information the Committee has obtained shows spread pricing and rebates benefit PBMs and have helped the three largest PBMs monopolize the pharmaceutical market. It’s clear these self-benefitting practices only serve to help their bottom line rather than patients.”
Senior executives from the nation’s three largest PBMs – CVS Caremark, Express Scripts and OptumRx – will testify at today’s hearing on Capitol Hill.
Danny Sanchez, chief executive officer of EmpiRx Health, said his company and many others in the pharmacy care industry wholeheartedly support the work of the Oversight Committee and the FTC in addressing the deeply flawed business practices of the big three PBMs.
Sanchez said: “The legacy PBM business model is antithetical to the essential goals of improving the health and well-being of patients and reducing the explosive growth in prescription drug spending and overall costs. Equally troubling, by continually squeezing reimbursements and imposing onerous DIR fees, the largest PBMs have threatened the very existence of community pharmacies. These neighborhood pharmacies play a vital role in providing patients with trusted, accessible and affordable healthcare in every corner of our nation.”
“There is a better way to manage the growing costs of prescription drugs while optimizing patient health outcomes and improving quality of life,” added Sanchez. “At EmpiRx Health, we are unique in the pharmacy care industry in that we attack the drug costs problem at the pen, when the physician writes the prescription. EmpiRx Health’s clinically-driven pharmacy care approach leverages our AI-powered population health engine to put the pharmacist at the center of the PBM service model. This enables our clinical pharmacists to conduct a comprehensive assessment of the patients’ medication therapies and then collaborate with the prescribing physicians to ensure clinically-appropriate, evidence-based drug therapies that keep patients healthy and lower costs.”
Underscoring the growing drumbeat of criticism of the largest PBM companies, the New York Times recently published a major expose on the biggest PBMs, noting: “The job of the P.B.M.s is to reduce drug costs. Instead, they frequently do the opposite.” In a follow up article reporting on the newly released Federal Trade Commission study on PBMs, the Times quotes FTC Chair Lina Khan as saying that her agency’s inquiry had shown “how dominant pharmacy benefit managers can hike the cost of drugs — including overcharging patients for cancer drugs.” Khan further stated that PBMs “can squeeze independent pharmacies that many Americans — especially those in rural communities — depend on for essential care.”
About EmpiRx Health
As the pioneer in value-based pharmacy care, EmpiRx Health is the leading clinically-driven pharmacy benefits management company. We put our customers and members first by enabling them to take control of their pharmacy benefits, healthcare outcomes, and financial results. Leveraging our AI-powered pharmacy care platform, Clinically™, EmpiRx Health’s pharmacists and client management teams provide the highest quality pharmacy care. This enables plan sponsor clients to keep their members healthy, happy, and productive, while substantially reducing prescription drug spending. Headquartered in Montvale, NJ with a newly opened office in Orlando, FL, EmpiRx Health recently celebrated its 10-year anniversary. To learn more, visit www.empirxhealth.com. More information on Clinically can be found at www.clinically.co.
Contact:
Stephanie Cox
Phone: (201) 775-6971
Email: SCox@empirxhealth.com
