Republican chairman wants FTC to review mergers of drug price negotiators

House Energy and Commerce Committee Chairman Greg Walden (R-Ore.) on Friday requested a review of mergers by drug price negotiators, questioning whether the moves had driven up costs for patients.

Walden wrote to the Federal Trade Commission requesting a review looking at recent mergers of companies known as pharmacy benefit managers (PBMs), which negotiate prices with drug manufacturers.

In the letter, Walden said that while there is “conflicting information” on the impact of these mergers, he fears some companies could have “used their market power to try to increase their profits and that PBMs have encouraged higher list prices for prescription drugs that increase co-pays for patients.”

{mosads}

The letter comes amid increased scrutiny of high drug prices. President Trump has been calling out drug companies by name on Twitter, and his administration recently floated the possibility of allowing the importation of drugs to increase competition when there are price spikes.

The letter from Walden, which was also signed by GOP Reps. Gregg Harper (Miss.) and Michael Burgess (Texas), focuses more on PBMs, which have also come under scrutiny for a lack of transparency in setting prices.

Some drug pricing advocates, however, say the focus should be on drug companies that initially set the prices.