![GSWNH_PeterPitts_072922 Peter Pitts](https://southwestregionalpublishing.com/wp-content/uploads/2022/07/GSWNH_PeterPitts_072922-1007x1024.jpeg)
Peter Pitts
Fed probe may expose reason for high med prices
By Peter Pitts
The Federal Trade Commission now has a golden opportunity to expose why so many Americans are getting fleeced on prescription medications.
The agency has just voted unanimously to conduct an inquiry into the business practices of America’s silent medical middlemen, giant corporations known as “pharmacy benefit managers.”
![Fed probe may expose reason for high med prices 1 GSWNH PeterPitts 072922](https://www.southwestregionalpublishing.com/wp-content/uploads/2022/07/GSWNH_PeterPitts_072922-295x300.jpeg)
Peter Pitts
Such a probe is long overdue. Drug makers are often painted as the villains for high drug prices, but PBMs are the real profiteers.
The three biggest PBMs, which own or are owned by the nation’s largest health insurers, control nearly 80% of the prescription medicine market. One of their principal jobs is to negotiate discounts with drug companies.
PBMs shroud their negotiations in secrecy. They aren’t legally bound to operate transparently, nor is there any requirement that discounts they negotiate get passed on directly to patients. These discounts increased from $89.5 billion in 2016 to $175 billion in 2019. This leaves sick Americans paying needlessly high prices for life-saving medications while PBMs and their insurer partners get rich.
Suppose the retail price for a drug is $500, and a patient’s insurance company obligates him to pay 20% of the cost. That means he has to pay $100. But if the PBM secured the drug for $300 — a fairly typical discount — the patient’s share wouldn’t drop to $60, as you might expect. He’d still be billed $100 — and wouldn’t have any idea that his insurer picked his pocket and lined its own.
PBM profits are soaring. They and other non-manufacturers in the drug supply chain managed to pocket 51% of the $686.9 billion spent on prescriptions in 2020. That’s quite a jump from the 37.2% middleman share in 2013 — and not a bad haul for paper-pushing entities that produce nothing.
Rising co-pay and co-insurance costs have led three out of every 10 adults to stop taking their medications as prescribed, according to a recent poll by the Kaiser Family Foundation. By making prescriptions less affordable, the insurer/PBM nexus drives up overall health costs as patients skip doses and end up needing expensive hospital stays.
It took a while for the FTC to get to yes on launching this inquiry, which begins as a basic study of PBM business practices but could lead to enforcement action down the road as the truth comes out. Cozy relationships and self-dealing with affiliated pharmacies and insurers and discriminatory practices against independent pharmacies are now the norm.
The FTC inquiry offers the best hope for a comprehensive review of PBM practices nationwide. As patients have been feeling the squeeze on prescription costs, PBMs and their affiliated insurers and pharmacies have been secretively maximizing their opportunities for profit. When consumers learn what’s really going on, they will know exactly where to direct their outrage.
Peter J. Pitts, a former FDA Associate Commissioner and member of the United States Senior Executive Service, is President of the Center for Medicine in the Public Interest and a Visiting Professor at the University of Paris School of Medicine. This article was first published in the Washington Times.
Local News
![OL LAWRENCE Oak Lawn’s Davion Lawrence (right) led his team with 14 points in a 57-52 victory at Evergreen Park on Thursday. Photo by Jeff Vorva](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/OL-LAWRENCE-1024x793.jpg)
Here’s the skinny: Trimmed-down Lawrence helps Oak Lawn top Evergreen
Spread the loveBy Jeff Vorva Staff Writer Oak Lawn senior basketball player Davion Lawrence is 45 pounds lighter than he was last season, but insists his eating habits are the same. He has, however, changed up his training habits. Heading into football last fall, Lawrence and a few fellow seniors wanted to get in the…
![HANNAH Former Mother McAuley star Hannah Swiatek (right) smiles and walks off the court with Justene Charlesworth after a recent University of St. Francis victory over Cardinal Stritch. Photo by Jeff Vorva Former Mother McAuley star Hannah Swiatek (right) smiles and walks off the court with Justene Charlesworth after a recent University of St. Francis victory over Cardinal Stritch. Photo by Jeff Vorva](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/HANNAH-1024x678.jpg)
College Report: McAuley grad Swiatek plays hero for St. Francis
Spread the loveBy Jeff Vorva Staff Writer Hannah Swiatek comes off the bench for the University of St. Francis and is averaging 3.1 points per game. But when called on for the biggest shot of her college career, the 5-foot-8 junior guard from Oak Lawn delivered. Swiatek scored the winning basket in a wild 99-97…
![BoysBB Argo-Shep Argo’s Evan Shelton (30) and Will Adams battle Shepard’s Robinson Hale for the ball. Photo by Steve Metsch](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/BoysBB-Argo-Shep-842x1024.jpg)
Evans, Adams lead Argo past Shepard on Alumni Night
Spread the loveBy Steve Metsch Corrspondent Argo’s Davonte Evans and Will Adams both knew it was just a matter of time before the Argonauts would find a way to beat Shepard. That time came in the third quarter of a South Suburban Red matchup, when Argo outscored Shepard en rout to a 61-52 on Jan.…
![reporter robert cruz at meeting Rob Cruz](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/reporter-robert-cruz-at-meeting.jpg)
Cruz booted from SD 229 school board in Oak Lawn
Spread the loveBy Dermot Connolly There is a vacancy on the Oak Lawn Community High School District 229 School Board, after members voted 6-1 last week to remove Robert Cruz for allegedly violating his oath of office, school board policy and state statutes. Cruz, a property developer, was elected to the District 229 board in…
![Screen Shot 2022-01-16 at 9.42.00 PM Screen Shot 2022-01-16 at 9.42.00 PM](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/Screen-Shot-2022-01-16-at-9.42.00-PM.png)
Tax exemptions will be automatic, Kaegi says
Spread the loveFrom staff reports In response to the ongoing pandemic, the Cook County Assessor Fritz Kaegi’s office will continue the automatic renewal of the Senior Freeze, Veterans with Disabilities and Persons with Disabilities Exemptions. The Homeowner and Senior Exemptions will continue to auto-renew every year. If a homeowner received any of these five exemptions…
![reporter oak lawn logo reporter oak lawn logo](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/reporter-oak-lawn-logo.jpg)
Oak Lawn officials rip governor, legislators over crime
Spread the loveBy Joe Boyle Two Oak Lawn officials are calling for Gov. J.B. Pritzker and local legislators to re-evaluate a police reform law that they say has resulted in a rise in crime. Trustee Alex Olejniczak (2nd) served as mayor pro-tem during the Oak Lawn Village Board meeting Tuesday night in place of Mayor Terry Vorderer,…
![GSWNH_StMaryEagleScout_012122 New Eagle Scout Adrian Ayala with his parents, Lorena Sanchez and Lazaro Ayala. --Supplied photo](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/GSWNH_StMaryEagleScout_012122-1024x836.jpg)
Troop 1441 Scout earns Eagle rank
Spread the loveFrom staff reports A journey that began years ago for Adrian Ayala recently culminated in Boy Scouting’s highest honor. Ayala, a member of Boy Scout Troop 1441 (sponsored by the St. Mary Star of the Sea Holy Name Society) was honored at an Eagle ceremony at Duggan Hall on Jan. 13. The Eagle rank…
Neighbors
![reporter 6-27-24 ol parade shriners Shriners entertain the crowd at last year's Oak Lawn Independence Day Parade. (File photo)](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/reporter-6-27-24-ol-parade-shriners-1024x698.jpg)
Oak Lawn Fourth of July festivities
Spread the loveCelebrate Independence Day at the Village of Oak Lawn’s annual Fourth of July Parade at 4 p.m. on Saturday, June 29! This cherished community event brings together families, friends, and neighbors to honor the spirit of freedom and patriotism. Parade will step off at 95th Street and Lacrosse and head west on 95th…
![regional 6-24-24 sd230 safety director Mary Pat Carr](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/regional-6-24-24-sd230-safety-director-659x1024.jpg)
District 230 names Director of Safety and Security
Spread the loveFrom staff reports The Consolidated High School District 230 Board of Education approved Dr. Mary Pat Carr as the district’s first Director of Security. She will move from her current position as Assistant Principal of Activities at Stagg High School to the Administrative Center on July 1. Her duties as Director of Safety…
![3 The Worth Public Library, 6917 W. 111th St., hosted its annual celebration on June 1 to bring patrons of all ages out to sign up for its summer reading program. (Supplied photos)](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/3-1024x771.jpg)
Worth Public Library kicks off summer reading program
Spread the loveBy Kelly White Patrons at the Worth Public Library welcomed in the summer season earlier this month. The library, 6917 W. 111th St., hosted its annual celebration on June 1 to bring patrons of all ages out to sign up for its summer reading program. “We love any excuse to celebrate reading with…
![regional 6-24-24 UFC Gym Orland Mall fire3 Fire hoses line the parking lot outside of the UFC Gym last Thursday. (Supplied photos)](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/regional-6-24-24-UFC-Gym-Orland-Mall-fire3-1024x739.jpg)
Fire knocks out Orland’s UFC Gym
Spread the loveFrom staff reports A fire last Thursday afternoon practically destroyed an Orland Park gym and knocked out neighboring businesses, as well. Orland Park firefighters received a call at 2:31 p.m. June 20 for a reported fire in the UFC Gym located at 66 Orland Square Drive Unit C. Multiple 911 calls were received for a…
![reporter 6-24-24 cr fire chief retires Retiring Chicago Ridge Fire Chief William Bonnar (at left) is congratulated by Mayor Jack Lind, who also presented him with a proclamation, at the June 18 Village Board meeting. (Photo by Dermot Connolly)](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/reporter-6-24-24-cr-fire-chief-retires-1024x764.jpg)
Chicago Ridge Fire Chief Bonnar retires
Spread the loveStarted his 50-year career as Orland Park cadet By Dermot Connolly Chicago Ridge Fire Chief William Bonnar officially announced his retirement from a nearly 50-year career at the June 18 Village Board meeting. Mayor Jack Lind made the announcement “with great regret,” joking that “he doesn’t have the age to retire but he…
![basketball stock basketball stock](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/stock-basketball-e1719502937287.jpg)
Stagg tabs Allee Hernandez to guide girls hoops
Spread the loveBy Randy Whalen Correspondent Allee Hernandez has accrued many years of basketball experience as a player and as an assistant coach. She will soon embark on a new experience as a head coach at Stagg, where she will be the Chargers first new head coach in 16 seasons. She succeeds Bill Turner, who…
![1 Shepard High School, 13049 S. Ridgeland Ave. in Palos Heights, was chosen as a Yearbook Excellence Contest recipient from Walsworth Publishing Company, a family-owned printing company based out of Marceline, Missouri. (Supplied photo)](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/1-1024x576.jpg)
Shepard’s yearbook wins national recognition
Spread the loveBy Kelly White Shepard High School students have worked tirelessly to create a yearbook for this academic year that was nationally recognized. The high school, 13049 S. Ridgeland Ave. in Palos Heights, was chosen as a Yearbook Excellence Contest recipient from Walsworth Publishing Company, a family-owned printing company based out of Marceline, Missouri.…
![reporter 6-24-24 dean faulk mugshot Dean J. Faulk](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/reporter-6-24-24-dean-faulk-mugshot.bmp)
Hickory Hills man charged in grandfather’s murder
Spread the loveBy Nuha Abdessalam A 32-year-old Hickory Hills man has been charged with first-degree murder in the June 21 death of his 90-year-old grandfather. Dean J. Faulk was charged on June 22 with the June 21 murder of Dean L. Faulk. Police said they responded to a call at 9:45 a.m. June 21 at…
![1 On June 8, Orland Park Public Library, 14921 S. Ravinia Ave., hosted its second annual Summer Reading Challenge Kick-Off event themed, Read, Renew, Repeat. (Supplied photos)](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/1-1-1024x683.jpg)
Orland Park Public Library kicks off summer
Spread the loveBy Kelly White Summer is nearly here and the Orland Park Public Library is ready for it. On June 8, the library, 14921 S. Ravinia Ave., hosted its second annual Summer Reading Challenge Kick-Off event themed, Read, Renew, Repeat. “There are multiple interpretations to this theme,” Jackie Boyd, Communications Manager at the Orland…
![dvn 6-24-24 porfirio honored State Senator Mike Porfirio being recognized as the Senator of the Year by representatives of the Illinois VFW. (Supplied photo)](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/dvn-6-24-24-porfirio-honored-1024x683.jpg)
llinois VFW names Porfirio Senator of the Year
Spread the loveIllinois Veterans of Foreign Wars recently selected state Senator Mike Porfirio as the Senator of the Year. “I’m deeply honored to receive this prestigious award from the Illinois VFW,” said Porfirio (D-Lyons Township). “I am committed to ensuring our veterans receive the protections, care and dignity they deserve. This recognition is a testament…