New accusations arise over drug price inflation

(ABC 6 News) — There are new accusations over what has been driving up the cost of prescription drugs for more Americans.

A new report from the Federal Trade Commission claims organizations known as Pharmacy Benefit Managers are making millions in profits. They are raising the prices of specialty drugs used to treat conditions like cancer and HIV.

These “middlemen” of the pharmaceutical industry exist solely in the U.S. and are responsible for negotiation drug prices.

“The individual patient does not directly benefit from those negotiations, and that’s one of the reasons why drugs are often unaffordable, even for Americans who have full insurance,” said Dr. Mariana Socal.

The FTC claims between 2017 and 2022, these companies generated $7.3 billion in revenue. The profits are coming from marking up dozens of drugs, with some prices rising by more than 1000%.