What’s unusual is that Mississippi State Representative Mark Formby asked the Federal Trade Commission (FTC) to opine on the likely competitive effects of SB-2445.
The FTC’s unambiguous conclusion? “We are concerned that SB-2445, if enacted as passed by the Mississippi State Senate, may increase pharmaceutical prices and reduce competition.” Read the complete letter.
There are at least two reasons why you should spend a few minutes reading the letter:
- Here we have another prominent example of aggressive state-level lobbying to enact legislation that is anti-mail, anti-pharma, anti-PBM, and in my opinion, anti-competitive. See The Crazy Battle to Outlaw Mail Pharmacies for a related example from Pennsylvania.
- While the letter to Rep. Formby isn’t an official FTC position, it offers useful insights into the current thinking on PBMs from certain key offices and bureaus of the FTC. I even saw some clues on how the FTC will think about CVS Caremark (NYSE:CVS) or further PBM consolidation.