Republicans in the House of Representatives are now reportedly interested in determining whether or not CVS Caremark, a pharmacy benefit manager (PBM), violated federal antitrust laws by threatening independent pharmacies in order to prevent them from adopting money-saving methods that are not part of the PBM’s network.
Jim Jordan, the chair of the House Judiciary Committee, a Republican from Ohio, sent a letter to CVS.
In the letter, Jordan requested that the company provide documents and communications regarding pharmaceutical hubs. Pharmaceutical hubs are a type of digital pharmacy service that can simplify the process of gaining access to and managing expensive specialty medications for patients.
Jordan voiced his concern regarding the fact that CVS does not allow independent pharmacies to take part in hub arrangements. This is because the firm is attempting to safeguard itself against the possibility of competition.
An independent pharmacy that collaborates with a hub that is not affiliated with the PBM runs the risk of being excluded from the network of the PBM.
“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 noted in the letter.
“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,” he added.
Patient assistance is provided via pharmaceutical hubs, which are frequently financed by pharmaceutical companies. These hubs act as intermediaries between specialist pharmacies and the manufacturers of pharmaceuticals.
In the pharmaceutical sector, PBMs serve as intermediates, and they have recently been under increased scrutiny from legislators and regulators.
The terms and conditions that govern access to prescription medications for hundreds of millions of Americans are negotiated by pharmacy benefit managers (PBMs).
PBMs are responsible for negotiating rates with pharmaceutical companies, making payments to pharmacies, and developing formularies that indicate which medications patients are able to obtain and how much they cost.
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