By Mariane Angela, Daily Caller News Foundation | December 12, 2024
House Republicans launched an antitrust investigation Thursday into whether CVS Caremark, a leading pharmacy benefit manager (PBM), has been using its market position to block independent pharmacies from using innovative, cost-saving tools.
House Judiciary Committee Chair Jim Jordan spearheaded the investigation focusing on allegations that CVS Caremark has prevented these pharmacies from engaging in digital pharmacy services known as pharmaceutical hubs, according to The Hill. Pharmaceutical hubs streamline the process for patients to access and manage complex, high-cost specialty medications.
These services, often backed by drug manufacturers, act as intermediaries between drugmakers and specialty pharmacies, aiming to enhance patient support, The Hill reported. However, there is concern that CVS Caremark’s policies could exclude independent pharmacies from the PBM’s network if they choose to utilize these hubs, effectively stifling potential competition before it can flourish, according Jordan’s letter to CVS.
Jordan pointed out the critical role these hubs play in fostering innovation and supporting patient care. He raised concerns that CVS Caremark’s practices might not only inhibit competition but also adversely affect patient welfare and the broader landscape of healthcare innovation.
“By foreclosing a pharmacy’s access to pharmaceutical hubs, a PBM can choke off would-be competitors before they enter the market and lower prices for consumers,” Jordan wrote. “If CVS Caremark is eliminating opportunities for patients to access such services through an independent pharmacist, this practice raises significant concerns for patient welfare and innovation across the nation.”
A bipartisan group of legislators Wednesday advocated for reduced drug prices by proposing a ban on the joint ownership of PBMs and pharmacies. Democratic Massachusetts Sen. Elizabeth Warren and Republican Missouri Sen. Josh Hawley introduced the “Patients Before Monopolies Act” to curb PBMs’ market influence, which Warren criticized for inflating drug prices and undermining small pharmacies.
Mariane Angela is a news reporter at the Daily Caller News Foundation
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