FTC Chair Lina Khan recently testified before the House Appropriations Subcommittee regarding the commission’s funding for fiscal year 2025. Simultaneously, CVS Health and UnitedHealth Group are demanding that Khan and two other FTC commissioners, Alvaro Bedoya and Rebecca Kelly Slaughter, recuse themselves from a lawsuit alleging the companies’ pharmacy benefit managers (PBMs) contributed to inflated insulin prices. CVS and UnitedHealth argue that past public comments by the commissioners demonstrate a significant bias against PBMs, which they claim would undermine fairness in the case.
Both companies filed motions arguing that comments from the commissioners suggest they have “prejudged” the case, violating due process. The FTC, which filed the lawsuit last month, claims that PBMs have exploited a system prioritizing high rebates from manufacturers, leading to increased insulin prices. The health sector observers note that similar accusations against PBMs relate to creating competitive imbalances in the pharmaceutical market.
Despite resistance against Khan from other corporations like Amazon and Meta in similar contexts, she has maintained her stance of impartiality. The broader context of the lawsuit comes at a time when the U.S. government is intensifying scrutiny on PBMs amidst rising prescription costs. CVS, currently analyzing its corporate structure amidst financial pressures, questions the commissioners’ impartiality due to their historic critical stance on PBMs.
Amid these legal challenges, the focus remains on the pivotal role of PBMs in the drug supply chain and ongoing regulatory scrutiny, with significant implications for the pharmaceutical market.
Original Story https://www.cnbc.com/2024/10/09/cvs-says-ftc-should-take-lina-khan-two-commissioners-off-pbm-case.html
Category :
Tags:
