Dear Colleague,
Disappointment. Anger. Frustration. Outrage. Action. I am cycling through a lot of emotions as I write this after four FTC commissioners heard the cries for help from consumers and community pharmacy owners for the FTC to do its job to protect patients and competition, but only two voted to do the right thing.
After more than an hour of horror stories from consumers, pharmacy owners, pharmacy groups, and advocacy associations about the harm that PBMs continue to cause, Commission Chair Lina Khan and Commissioner Rebecca Kelly Slaughter voted to pursue a 6(b) study of PBMs. Don't hear the word "study" and underestimate it. A 6(b) study is akin to subpoena power and would be a root canal for the PBMs. Unfortunately, Commissioner Noah Phillips and Commissioner Christine Wilson closed their ears to consumers and small business and voted "no" to doing the study. And with a tie vote, the motion failed.
NCPA is a bipartisan organization. Simply put, we support political candidates who support community pharmacy. But, in this case, I have to point out that the two commissioners who voted in favor of going after the PBMs were appointed by Democrats. And the two who voted in favor of letting the PBMs continue to have their way with consumers and independent pharmacies were appointed by Republicans, the same party that continually tells us how important small businesses are. (I do want to highlight that Rep. John Rose [R-Tenn.] and Rep. Buddy Carter [R-Ga.] provided comments supporting patients and independent pharmacies.). The Republican Party touts itself as a champion of small business. Well, the commissioners they appointed just gave your small business a gut punch.
FTC commissioners are not elected. They are nominated by the White House and confirmed by the Senate. Here's NCPA's statement following the meeting.
If you are even half as mad as I am, be sure to forward NCPA's statement to your senators via email and social media. If they're Republicans, let them know that their appointees failed you, your patients, and everyone who relies on your business.
I will point out that there is a possibility that the proposed 6(b) study could be revised and put up for another vote with these four commissioners or after a fifth commissioner (the FTC can have up to five commissioners) has been confirmed. In fact, PoliticoPro reported the result with the headline, "Deadlocked But Not Dead," citing another 6(b) study that was voted down in November but subsequently heard again in December and approved.
PoliticoPro also reported this quote from FTC Chair Khan, who called what PBMs are doing as a "life of death" situation: "I have to say I'm disappointed by this outcome. I see this as an area where we have a real moral imperative as an agency to act."
I agree with Chair Khan, although I think "disappointed" is an understatement. The FTC commissioners had a chance to do something about this moral imperative. Two fulfilled their moral obligation. The other two bowed to big business.
Best,
B. Douglas Hoey, Pharmacist, MBA
NCPA CEO
P.S. Want to read more? Read my July 23 Executive Update: PBMs: 21st century robber barons and my April 16 EU: Antitrust reform can't come soon enough.
