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FTC chair vows thorough PBM probe as lawmakers warn rural pharmacies are closing
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Summary
Chairman Andrew Ferguson said the FTC is devoting substantial resources to its Section 6(b) probe of pharmacy benefit managers, while committee members cited pharmacy closures in rural districts and urged timely, thorough reporting.
Washington — Federal Trade Commission Chairman Andrew Ferguson told House appropriators the agency is dedicating significant resources to a wide‑ranging probe of pharmacy benefit managers and will aim for a thorough final report rather than a rushed product.
“Whatever we next produce needs to be a very, very thorough accounting of all the data we have,” Ferguson said of the agency’s Section 6(b) study of PBMs. He said the FTC has taken “huge quantities of data” from PBMs and pharmacy groups and is working through it.
Why it matters: Members from rural districts described independent pharmacies shutting and urged the FTC to finish a definitive report that lawmakers can use to craft legislation. The commission’s probe and any enforcement could affect drug prices, pharmacy viability and health‑care markets nationwide.
Rep. Mariannette Miller‑Meeks (noted in testimony as a member from a rural area) and other lawmakers said independent pharmacies are the lifeblood of small towns. In this hearing, Rep. Hinson said that in her home state of Iowa, 200 pharmacies have closed since 2014 and 31 closed in 2024; she said the closures imperil access to medicines in rural communities.
Ferguson noted the PBM market’s scale in one metric, saying the industry manages nearly 95% of the prescriptions filled in the United States. The agency has issued interim reports (July and January) that flagged PBM markups on specialty generics; Ferguson called the first interim report “a bit rushed” and said the commission has improved the second interim report but still needs to complete a more comprehensive final product.
The FTC has also used its law‑enforcement tools in PBM matters. Ferguson noted a recent district court order in Washington, D.C., compelling a large PBM to comply with FTC investigative orders and an ongoing administrative adjudication involving insulin pricing.
Members urged the FTC to move quickly because states have begun passing PBM reforms. Ferguson said he welcomes legislative action and intends the FTC’s final report to inform both federal and state policymakers.
Ending note: The committee’s questions signaled bipartisan interest in PBM oversight. The FTC told lawmakers it will continue law enforcement and investigations while completing the data‑intensive 6(b) study; lawmakers asked for timely, complete disclosure to support potential legislative remedies.
