STAT+: FTC issues a non-committal report on ‘rebate walls,’ but will the agency dig deeper?

In response to Congressional concerns over prescription drug pricing, the Federal Trade Commission released a brief report that suggested the agency is poised to further investigate a controversial contracting practice known as a rebate wall.

The term refers to arrangements between drug makers and pharmacy benefits managers over placement of medicines on formularies, or coverage lists used by health plans. By offering a higher rebate to a PBM for a medicine, but especially for a bundle of medicines, a drug maker can wall off rivals from gaining favorable formulary placement.

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