PBMs 'take and take and take'

Happy August. We take a deep dive into the emotional testimonies at last week’s FTC hearing on the impact of PBMs, and why it’s more important than ever to get your seasonal flu shot. Get the details below, plus more news you need to know this week. (670 words, 3 minutes, 21 seconds)

Emotional testimonies at FTC hearing expose harmful impact of PBMs

Members of the public criticized pharmacy benefit managers (PBMs) for increasing the cost of drugs and reducing patient access during last week’s Federal Trade Commission (FTC) open meeting.

The FTC’s view: The FTC’s interim report on PBMs says vertically integrated conglomerates that own PBMs, insurers, and pharmacies use market power to profit by inflating drug prices and favoring their own pharmacies over independent pharmacies.

A father’s view: William Schmidtknecht said his son died of cardiac arrest caused by asthma just days after seeking “a routine prescription that he would have paid less than $70 for in 2023,” to discover in January 2024 “his price was changed to over $500.”

A mother’s view: Nicole Freedman, whose daughter has cystic fibrosis, said a drug “has certainly improved our quality of life,” but an insurance change meant she’s had to deal with a PBM and faces “more than $3,000 a year in medical debt.”

The pharmacists’ views: Several pharmacists said PBMs use deceptive practices to favor pharmacies they own and reimburse independent pharmacies below acquisition costs. The resulting closures reduce patient access, they said.

Why it matters: “Everywhere we go, we run into former patients who tell us sad stories about how their lives have changed. Without our pharmacies, they can’t get delivery. They can’t find anyone to fill prescriptions after hours,” said Robin Craft, who, with her husband Joe, lost four pharmacies because PBMs did not reimburse them the amount it cost to obtain drugs. “PBMs save no one money; they only take and take and take.”

It's time for Congress to take action. Committees across Capitol Hill have examined the egregious practices of the PBMs and there is strong bipartisan interest to pass critical PBM reforms this year. The FTC Report, and recent hearing with the "Big Three", reignites congressional momentum.

Read more about the hearing at Bio.News.

Farm workers targeted for seasonal flu vaccine – but we could all use one

Farm workers considered to be at the highest risk of infection with avian flu will be the focus of a seasonal influenza vaccination campaign, but nearly everyone should get seasonal flu shots.

What’s happening: The Centers for Disease Control and Prevention (CDC) is spending $5 million to provide seasonal influenza vaccines for the estimated 200,000 U.S. livestock workers to “reduce risks of new strains of influenza emerging.”

Why it matters: Protection from seasonal flu would reduce the risk of co-infection with seasonal and avian flu. This protection also helps prevent the exchange of genetic material between avian and other flu viruses, which could make avian flu transferable between people, the CDC said last week.

But we could all use a flu shot.CDC recommends everyone over six months old get a seasonal influenza vaccine, with a few medical exceptions.

The big picture: “A decline in influenza vaccination rates can have serious consequences, such as higher rates of hospitalization, increased absenteeism from work or school, and added strain on public health systems and hospitals,” Gregg Sylvester, Chief Health Officer & Vice President of Medical Affairs at BIO member CSL Seqirus, told Bio.News. 

Read our interview with CSL Seqirus about what to expect during this flu season.

What Else to Know This Week

BIO’s John Torres named USDA-USTR trade adviser. John Torres, BIO Senior Director, Federal Government Relations – Agriculture & Environment, is one of 55 experts selected to serve on agricultural trade advisory committees organized by the U.S. Department of Agriculture and the U.S. Trade Representative. Torres will serve on the Agricultural Technical Advisory Committee (ATAC) for Trade in Grains, Feed, Oilseeds, and Planting Seeds. “The advisory committee system was created by Congress to ensure that U.S. agricultural stakeholders have input and insight into U.S. trade policy and negotiating objectives,” according to USDA.

A nasal vaccine for COVID prevents infection in animal tests. The vaccine, being developed in the U.S. by BIO member Ocugen, was shown to completely prevent infection in hamsters during lab tests, the Washington University School of Medicine in St. Louis reports.

Beltway Report: What's Ahead in Washington

As concerns grow of a wider Mideast war, President Biden begins the week with a phone call to His Majesty King Abdullah II of Jordan and a meeting with the national security team in the White House to discuss developments in the Middle East. Meanwhile, Vice President Kamala Harris is expected to announce her pick for her own No.2 on Tuesday.