LUBBOCK, Texas — Prescription drug prices are rising, and a new report from the Federal Trade Commission (FTC) explains why. Pharmacy benefit managers (PBM) are being blamed for driving up costs. Between 2017 and 2022, large PBMs made billions by charging insurers more while paying less for medications.
The FTC also found that PBMs steer patients to their own pharmacies, making it hard for small, local pharmacies to stay open.
“A lot of times when someone comes to fill their prescription at a local pharmacy, the insurance will say, no, you need to go to our mail order or our specialty pharmacy,” said Chris Hobart, owner of Highland Pharmacy in Lubbock.
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PBMs act as middlemen in the pharmaceutical industry, negotiating drug prices. The FTC says the largest PBMs in the U.S. push higher-priced drugs through their own pharmacies, making bigger profits…