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FTC Case Study

ProCare Rx Team • March 3, 2025

FTC Report Reveals $7.3 Billion in Excessive PBM Revenues—What It Means for Employers and Patients

On January 14, 2025, the Federal Trade Commission (FTC) released its second interim report, revealing that the three largest pharmacy benefit managers —CVS Caremark, Cigna's Express Scripts, and UnitedHealth's Optum Rx—generated over $7.3 billion in excessive revenues from 2017 to 2022 by marking up specialty generic drug prices. These price increases affected critical medications used to treat conditions such as HIV and cancer, with the PBMs inflating drug prices at their affiliated pharmacies by significant percentages, thereby increasing costs for patients, employers, and health plans.


Understanding the FTC's Findings


The FTC's report highlights the significant influence PBMs have over drug pricing and access. The findings suggest that the business practices of these major PBMs can lead to increased costs for essential medications, impacting patients and the broader healthcare system. As FTC Chair Lina M. Khan stated, "The FTC’s interim report lays out how dominant pharmacy benefit managers can hike the cost of drugs—including overcharging patients for cancer drugs."


Advocating for Ethical PBM Practices


We believe that PBMs should prioritize the well-being of patients by ensuring access to affordable medications. Our approach focuses on providing clients with transparent, customizable solutions that align with their specific needs, without unnecessary markups or hidden costs.


Looking Ahead


In light of the FTC's findings, it's crucial for stakeholders in the healthcare industry to advocate for practices that promote fairness and affordability. By choosing partners who prioritize transparency and patient care, we can work together to create a more equitable healthcare system.

ProCare Rx remains dedicated to being a trusted partner in managing pharmacy benefits, offering solutions that are both innovative and aligned with the best interests of our clients and their members.


Choosing a PBM That Works for You


Employers and health plans need to ask themselves an important question: Is my PBM working for me, or against me? The FTC’s findings highlight how some PBMs prioritize profits over patient care, but it doesn’t have to be this way. At ProCare Rx, we believe in fair, transparent pricing and accountability, ensuring that our clients get the best value without hidden costs. As a trusted PBM partner since 1987, we remain committed to helping employers and health plans navigate an increasingly complex system—with honesty, transparency, and a focus on real savings.

To learn more about how ProCare Rx operates differently, check out our Seven PBM Standards one-pager: Download Here

By demanding integrity and transparency, employers can take control of their pharmacy benefits and ensure their members receive affordable, high-quality care.

About ProCare Rx
ProCare Rx, a privately held leader in pharmacy claims processing, pharmacy benefit management (PBM), and clinical program design, has been empowering healthcare organizations since 1986. With offices in the U.S. and Puerto Rico, we provide customizable, cost-effective solutions tailored to the unique needs of self-insured employer groups, TPAs, pharmacies, health systems, unions, and other industry leaders. Our commitment to ethical, transparent operations and long-lasting partnerships has made us a trusted partner in optimizing pharmacy benefits and clinical performances. To learn more about how ProCare Rx is bridging the gap between cost savings and clinical innovation, visit http://www.ProCareRX.com

Media Contact:
Marc Cohen, VP, Marketing and Sales
marketing@ProCareRx.com

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By The ProCare Rx Team January 20, 2025
Where We Were and Where We Are Headed GLP-1 usage increased dramatically in 2024, due in part to its dual role in managing diabetes and producing weight loss. The growing popularity of the GLP-1s provides an indication of the medication’s effectiveness, however, it is less certain how employers view the GLP-1s in terms of providing benefit coverage for these types of medicines. To gain additional insight on how self-funded employers are viewing GLP-1s, we took a look at claims from ProCare Rx self-funded employer clients who had at least 1 member attempting to fill the medication this past year. Here is what we found: Throughout 2024, coverage for the GLP1s medications formulated for the treatment of Diabetes was widespread among self-funded employer groups. We found that only 1 in 10 Groups rejected any claim for medicines in this therapeutic class for the reason “drug not covered”. However, this did not mean the percentage of Groups generating a paid claim was 90%. Through the clinical protocols, step therapies and prior authorization requirements put in place on behalf of the plan sponsor and, in some cases then overwritten by the Plan Sponsor, only 6 out of 10 Groups had a paid claim for a GLP1s in this therapeutic category. However, the tide appears to be turning. In the past 3 months, the number of Groups generating a paid claim for Diabetes formulated GLP1s increased to 8 out of 10 Groups. This indicates that coverage restrictions are decreasing and/or plan sponsor overrides are increasing. Overall, the number of paid claims for GLP-1s formulated to treat Diabetes increased by 25% from Q1 2024 to Q4 2024. Unlike the GLP1s formulated for Diabetes, GLP1s medications formulated for Weight Management continued to have limited benefit coverage among self-funded employer groups. 7 out of 10 Groups rejected any claims for medicines in this therapeutic class for the reason “drug not covered.” In addition, clinical protocols, step therapies and prior authorization requirements administered by us and not overridden by the plan sponsor, lowered the number of Groups with a paid claim 2 out of 10. While the number of Groups paying claims for Weight Management GLP1 claims held steady, the volume of claims nearly doubled, increasing by 86% from Q1 2024 to Q4 2024. As we move forward, your organization needs to be prepared for the GLP-1 storm that continues to build momentum, making “Not Covered/No-Coverage” line, harder and harder to maintain. And, for those Groups that did open up and started to allow coverage for these types of GLPs, you will want to make sure programs are in place to manage the volume growth and help ensure proper utilization. This IS happening. Are YOU prepared? Don’t navigate the GLP-1 waters alone. As a trusted partner, ProCare Rx can help you navigate this storm and protect your organization. To learn more about ProCare Rx’s suite of pharmacy benefit solutions, please visit www.procarerx.com
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ProCare Rx, a leading pharmacy claims processor, has received updated certification from the Centers for Medicare and Medicaid (CMS) 2025 Prescription Drug Event (PDE) data submissions beginning January 1, 2025. Our certification covers both the Traditional Medicare and Medicaid Plans as well as the Program of All-Inclusive Care for the Elderly (PACE) Medicare Part D. As one of the first dual-compliant providers, our customer regulatory reporting will continue to meet both current and new 2025 submission requirements. This program-wide recertification was mandated by CMS, and included significant changes in the PDE File Layout expansion and introduction of new financial and non-financial data fields on the PDE record. Some of the changes applicable to all Part D sponsors include: “ Vaccine Administration Fee or Additional Dispensing Fee ” (This removed reference to Emergency Use Authorization (EUA) status of oral antiviral drugs) “ Drug Status Indicator, ” determines that the National Drug Code (NDC) submitted on the PDE was an applicable drug or non-applicable drug at the time of PDE processing. For PACE claims there are a variety of additional financial/non-financial fields and indicators that must be included in a claim: Estimated Remuneration at POS Amount (ERPOSA) Pharmacy Price Concessions at POS Patient Pay Amount Patient Liability Reduction Due to Other Payer Amount (PLRO) Other TrOOP Amount/Indicator Selected Drug Subsidy Reported Manufacturer Discount Gross Drug Cost Below Out-of-pocket Threshold (GDCB) Gross Drug Cost Above Out-of-pocket Threshold (GDCA) Low Income Cost Sharing Subsidy Amount (LICS) Non-covered Plan Paid Amount (NPP) Originally Prescribed Quantity Part D Model Indicator Medicare Prescription Payment Plan Indicator Kristi Mitchell, ProCare Rx Vice President of Product Management and Implementation stated, “This certification is a testament to our team’s hard work and dedication. The journey to ensuring that we are able to meet the new CMS reporting requirements on behalf of our clients has been incredibly rewarding, and we express our sincere gratitude to all our clients, employees, and everyone in the ProCare Rx family for their continued support. We look forward to achieving many more milestones together in the future!” The 2025 PDE Testing and Certification Protocol for non-PACE Part D sponsors is posted at www.csscoperations.com 
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Gainesville, GA – ProCare Rx is excited to announce that Mr. Russell Cerny has joined the company effective March 25, 2024. In his role as Senior Vice President, Mr. Cerny will be responsible for expanding our strategic partnerships with Health Plans, Health Systems, Benefit Consultants, and large Employer groups. Doyle Jensen, Chief Growth Officer said, "Russ has great integrity and a deep understanding of the industry that will help us deliver our direct-source message of customized and cost effective pharmacy benefit solutions that address the needs of our future customers". As a business development professional with over two decades in the industry, Russ understands problem solving from both an operational and account management perspective. This extensive and varied background in providing pharmacy related services enables Russ to focus on cost containment, membership satisfaction, and ultimately, patient well-being for his clients. Mr. Cerny said, “I'm proud to have joined ProCare Rx, an organization committed to routine technological development and enhancement of their own proprietary claims processing system. Our team provides clients with as little or as much control as desired when it comes to administering pharmacy benefits. We'll support a model that meets our clients’ needs and every client is unique and needs a solution built specifically for them.” About ProCare Rx ProCare Rx is a privately held, direct-source pharmacy benefit administrator delivering industry leading cost savings and superior service to health plans, health systems, unions, and many other payer organizations nationwide. If you are interested in learning more about how ProCare Rx can reduce your pharmacy spend and improve your health outcomes, please contact: sales@procarerx.com.
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