FTC says prescription middlemen are squeezing Main Street pharmacies

Prescription drug middlemen — also known as pharmacy benefit managers — are lining their pockets by inflating drug prices, including overcharging cancer patients, the Federal Trade Commission said Tuesday.  

"The FTC's interim report lays out how dominant pharmacy benefit managers can hike the cost of drugs — including overcharging patients for cancer drugs," FTC Chair Lina M. Khan said in a news release. "The report also details how PBMs can squeeze independent pharmacies that many Americans — especially those in rural communities — depend on for essential care."

Pharmacy Benefit Managers began, decades ago, as administrators, validating and processing pharmacy benefits provided by separate insurance plans. After years of acquisitions, that's no longer the case, as the FTC lays out in its report.