Open Markets Applauds FTC’s Decision to Empower Puerto Rico’s Independent Pharmacies
WASHINGTON – On Monday, December 9, the Federal Trade Commission (FTC) modified a 12-year-old consent order that previously prohibited independent pharmacies in Puerto Rico from collectively bargaining with pharmacy benefit managers (PBMs) and insurers. Under the supervision of the Puerto Rican government, these pharmacies are now permitted to negotiate collectively, making this a significant shift in instilling practices of fair competition and battling market consolidation.
The pharmacist group filed a petition in August to revise the consent order. In October, the Open Markets Institute supported the petition with a comment letter. In her statement, FTC Chair Lina Khan cited key pro-cooperation statutes such as the Capper-Volstead Act and a law review article authored by Open Markets Legal Director Sandeep Vaheesan.
Key Points from the FTC Decision:
· Enabling Local Pharmacies: By allowing collective bargaining, small pharmacies are now on a level playing field which empowers them to negotiate more adequate terms with dominant PBMs and insurers.
· Supporting Fair Competition: The decision echoes the FTC’s commitment to remove consolidation in the market and ensure equitable market practices.
· Regulatory Oversight: Collective bargaining will now be under the supervision of the Puerto Rican government, guaranteeing that all parties are respecting consumer interests