X

Aggregator

America's Top Three Insurers Reaped $7.3 Billion From Their Drug-Middlemen's Markups, FTC Says

Slashdot
3 months 2 weeks ago
America's Federal Trade Commission has been "raising antitrust concerns" about them for years, reports NBC News. The latest? America's three largest drug middlemen "inflated the costs of numerous life-saving medications by billions of dollars over the past few years, the FTC said in a report Tuesday." The top pharmacy benefit managers (PBMs) — CVS Health's Caremark Rx, Cigna's Express Scripts and UnitedHealth Group's OptumRx — generated roughly $7.3 billion through price hikes over about five years starting in 2017, the FTC said. The "excess" price hikes affected generic drugs used to treat heart disease, HIV and cancer, among other conditions, with some increases more than 1,000% of the national average costs of acquiring the medications, the commission said. The FTC also said these so-called Big Three health care companies — which it estimates administer 80% of all prescriptions in the U.S. — are inflating drug prices "at an alarming rate, which means there is an urgent need for policymakers to address it...." Some of the steepest drug markups were "hundreds and thousands of percent," according to Tuesday's report, which highlights just how profitable specialty drugs have become for the three leading PBMs. Cancer drugs alone made up nearly half of the $7.3 billion, the commission wrote, with multiple sclerosis medications accounting for another 25%. Dispensing highly marked-up specialty drugs was a massive income stream for the companies in 2021, the FTC found. Out of tens of thousands of drugs dispensed, the top 10 specialty generics alone made up nearly 11% of the companies' pharmacy-related operating income that year, the agency estimated. Across the 51 drugs the agency analyzed, the Big Three's price-markup revenue surged from $522 million in 2017 to $2.1 billion in 2021, the report said. "The FTC found that 22 percent of specialty drugs dispensed by PBM-affiliated pharmacies were marked up by more than 1,000 percent," reports The Hill, "while 41 percent were marked up between 100 and 1,000 percent. Among those drugs marked up by more than 1,000 percent, half of them were marked up by more than 2,000 percent." And the nonprofit site progressive news site Common Dreams shares some examples from the FTC's 60-page report: "For the pulmonary hypertension drug tadalafil (generic Adcirca), for example, pharmacies purchased the drug at an average of $27 in 2022, yet the Big Three PBMs marked up the drug by $2,079 and paid their affiliated pharmacies $2,106, on average, for a 30-day supply of the medication on commercial claims," the publication notes. That's a staggering average markup of 7,736%... The new analysis follows a July 2024 report that revealed Big Three PBM-affiliated pharmacies received 68% of the dispensing revenue generated by specialty drugs in 2023, a 14% increase from 2016... Responding to the FTC report, Emma Freer, senior policy analyst for healthcare at the American Economic Liberties Project — a corporate accountability and antitrust advocacy group — said in a statement Tuesday that "the FTC's second interim report lays bare the blatant profiteering by PBM giants, which are marking up lifesaving drugs like cancer, HIV, and multiple sclerosis treatments by thousands of percent and forcing patients to pay the price."

Read more of this story at Slashdot.

EditorDavid

Visiting the Roman Space Telescope - as It's Being Assembled

Slashdot
3 months 2 weeks ago
"The next great space telescope will study distant galaxies and faraway planets from an orbital outpost about a million miles from Earth," writes the Washington Post. "But first it has to be put together, piece by piece, in a cavernous chamber at the NASA Goddard Space Flight Center in Greenbelt, Maryland." One long-time NASA worker calls it "the largest clean room in the free world," and the Post notes everyone wears white gowns and surgical masks "to keep hardware from being contaminated by humans. No dust allowed. No stray hairs. One wall is entirely covered by HEPA filters." The place is known as the Clean Room, or sometimes the High Bay. It is 125 feet long, 100 feet wide, 90 feet high, with almost as much volume as the Capitol Rotunda. NASA boasts that in the Clean Room you could put nearly 30 tractor-trailers side by side on the floor and stack them 10 high... About two dozen workers clustered around towering pieces of hardware, some twice or three times the height of a typical person. When stacked and integrated, these components will form the Nancy Grace Roman Space Telescope. The assembly of the telescope ramped up this fall, with 600 workers aiming to get everything integrated and tested by late 2026. NASA has committed to launching the telescope no later than May 2027. The telescope will be roughly the size of the Hubble Space Telescope, but not quite as long (a "stubby Hubble," some call it). What the astronomy community and the general public will receive in exchange for the considerable taxpayer investment of nearly $4 billion is an instrument that can do what other telescopes can't. It will have a sprawling field of view, about 100 times that of the Hubble or Webb space telescopes. And it will be able to pivot quickly across the night sky to new targets and download tremendous amounts of data that will be instantly available to the researchers. A primary goal of the Roman is to understand "dark energy," the mysterious driver of the accelerating expansion of space. But it will also attempt to study the atmospheres of exoplanets — worlds orbiting distant stars... The main element, informally referred to as "the telescope" but officially called the "optical telescope assembly," showed up this fall. It was originally built as a spy satellite for the National Reconnaissance Office. That's right: It was built to look down at Earth, rather than at the rest of the universe. The NRO decided more than a decade ago that it didn't need it, and gave it, along with another, identical spy satellite, to NASA. Roman's wide-angle view of deep space, its maneuverability and ability to download massive amounts of data makes it optimized as a dark energy telescope. And it will also study the effects of dark matter, which comprises about 25 percent of the universe but remains a ghostly presence.

Read more of this story at Slashdot.

EditorDavid