WSJ Editorial Board
Sep 25, 2024
If rebates are a problem, why does Congress require them for government insurance plans?
Lina Khan claims she’s trying to lower prices, but the Federal Trade Commission Chair’s attacks on business often do the opposite. Consider her new charge against pharmacy benefit managers (PBMs), which could result in higher healthcare premiums for all Americans.
Democratic commissioners on Friday voted 3-0 to bring a complaint against PBMs for extracting rebates from drug makers in return for preferential placement on insurer formularies. The agency filed the charges in its administrative tribunal where it nearly always wins. (The two Republican commissioners were recused.)
Congress has been debating how to regulate PBMs, but Ms. Khan isn’t waiting. She’s seeking to effectively ban PBM rebates by deeming them an “unfair method of competition” under the Federal Trade Commission Act. You have to smile at Ms. Khan portraying big drug makers as victims in her suit.