House Republicans on Thursday filed an antitrust investigation into whether large pharmacy benefit manager (PBM) CVS Caremark is using its market position to prevent independent pharmacies from using innovative cost-cutting tools. A legal investigation has begun.
House Judiciary Committee Chairman Jim Jordan is spearheading an investigation focused on allegations that CVS Caremark prevented these pharmacies from participating in a digital pharmacy service known as DrugHub. According to To The Hill. Pharmaceutical hubs streamline the process for patients to access and manage complex and expensive specialty medications.
These services are often backed by drug companies and are intended to act as intermediaries between drug companies and specialty pharmacies, providing greater patient support, The Hill reported. However, according to Jordan's letter to CVS, CVS Caremark's policies exclude independent pharmacies from the PBM's network if they choose to utilize these hubs, allowing potential competition to flourish. There are concerns that it could be effectively suppressed before it can be implemented. (Related: CVS employee files lawsuit after company allegedly revokes religious exemption to avoid prescribing contraceptives)
OCEANSIDE, NY – AUGUST 23: A panoramic view of the CVS Pharmacy store on August 23, 2024 in Oceanside, New York. (Photo by Bruce Bennett/Getty Images)
Jordan noted that these locations play a critical role in fostering innovation and supporting patient care. He expressed concern that CVS Caremark's practices not only stifle competition, but also have the potential to negatively impact patient welfare and the broader landscape of medical innovation.
“By denying pharmacies access to drug hubs, PBMs can shut out competitors before they enter the market and lower prices for consumers,” Jordan wrote. “If CVS Caremark eliminates the opportunity for patients to access such services through independent pharmacists, this action raises serious concerns for patient welfare and innovation across the country.”
A bipartisan group of lawmakers on Wednesday proposed banning joint ownership of PBMs and pharmacies, arguing for lower drug prices. Democratic Massachusetts Sen. Elizabeth Warren and Republican Missouri Sen. Josh Hawley have introduced the “Pre-Monopoly Patient Act” to curb the market power of PBMs, but Warren opposes raising drug prices. criticized the weakening of small-scale pharmacies.
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