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Wednesday, December 4, 2024

Lawmakers urge DOJ probe into pharmacy benefit managers' role in opioid crisis

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Rep. Earl L. Carter, US Representative for Georgia's 1st District | Official U.S. House headshot

Rep. Earl L. Carter, US Representative for Georgia's 1st District | Official U.S. House headshot

Rep. Earl L. "Buddy" Carter, alongside fellow representatives Raja Krishnamoorthi, Deborah K. Ross, and Cliff Bentz, has addressed a letter to Attorney General Merrick Garland. The letter calls for the Department of Justice to investigate the role that pharmacy benefit managers (PBMs) may have played in the opioid crisis.

The representatives expressed concerns over recent findings: “Recent reports, including confidential files and information from CVS Caremark, Express Scripts, and Optum Rx, suggests the three largest PBMs colluded and conspired to steer patients towards OxyContin in exchange for $400 million… [and] at the expense of innocent American lives.”

They further stated: “The lack of transparency surrounding PBM’s rebate agreements and formulary decisions has allowed them to operate with little to no oversight, posing a significant threat to America’s public health. That is why we strongly urge the Department of Justice to investigate the role PBMs may have played in the opioid crisis and hold them accountable.”

The letter references an investigative report by Barron’s which found that PBMs had a hand in boosting opioid sales during the epidemic's peak by increasing rebates when a health plan covered larger amounts of OxyContin. Documents revealed that CVS Caremark had an arrangement with Purdue Pharma allowing for double rebates if four or more opioid pills were authorized daily instead of two.

Additionally, Barron's confidential files indicated that in 2017 Express Scripts granted Purdue Pharma favorable placement on their formularies in return for a 40% rebate. This practice reportedly fostered excessive prescribing and dispensing of OxyContin.

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