
(LibertySociety.com) – The FTC report criticizing UnitedHealth’s drug pricing strategies unveils a saga of inflated cancer medication costs amidst a high-profile murder case.
At a Glance
- UnitedHealth’s substantial profits from marked-up leukemia drugs were exposed in the FTC report.
- The murder of UnitedHealth CEO Brian Thompson has intensified discussions on healthcare costs.
- The FTC report reveals significant profits by PBMs from vital drug markups.
- The FTC may consider legal scrutiny despite no explicit claims of illegal conduct.
FTC Report Unveils Massive Drug Price Inflation
UnitedHealth, the largest healthcare company in America, has been spotlighted for marking up cancer medication prices substantially, as highlighted in an FTC report. This report indicates that drugs essential for treating leukemia and prostate cancer were marked up by percentages exceeding 5000%. Both Gleevec, a drug for leukemia, and Zytiga, used for prostate cancer, experienced astronomical price increases of 5232% and 2299%, respectively, in 2022.
The FTC’s findings underscore that UnitedHealth, along with other major PBMs, channeled significant profit from these markups by paying affiliated pharmacies excess dispensing revenue. Despite these revelations, the concept of illegal conduct wasn’t distinctly conveyed.
CEO’s Murder Casts Shadow on Findings
The murder of UnitedHealth CEO Brian Thompson is further fueling the public’s outcry regarding the high costs of medical care in the U.S. Luigi Mangione, accused of this crime, was discovered with a manifesto condemning UnitedHealthcare and has pleaded not guilty. Discussions have intensified, casting a spotlight on the ongoing tension between corporate drug pricing and consumer rights.
“How many more interim reports will it take before the FTC includes the mountain of data that refutes these few outliers? We’ve provided terabytes of data in compliance with their requests, and virtually none of that data is reflected in this report.” – CVS Vice President David Whitrap
Criticism from the Pharmaceutical Care Management Association emphasized the report’s failure to recognize PBMs’ cost-saving role, suggesting an incomplete representation of the drug supply chain. Ongoing scrutiny remains as the FTC remains poised for potential legal measures.
PBMs’ Role in Rising Drug Prices
Pharmacy Benefit Managers (PBMs), acting as intermediaries in the pharmaceutical industry, have come under fire for reaping substantial profits from marked-up drug prices. Between 2017 and 2022, UnitedHealth’s Optum, CVS Health’s CVS Caremark, and Cigna’s Express Scripts systematically imposed markups, generating an additional $7.3 billion in revenue. Yet, allegations have been contested, with entities like Cigna disputing the FTC’s findings for being misleading.
“The Big 3 PBMs marked up two specialty generic cancer drugs by thousands of percent and then paid their affiliated pharmacies hundreds of millions of dollars of dispensing revenue in excess of estimated acquisition costs for each drug annually.” — The FTC
With UnitedHealth’s 2023 revenue hitting a staggering $372 billion, debates regarding the affordability of critical drug treatments continue. Today, questions linger around the ethical ramifications of these business practices and their impact on national healthcare costs.
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