Latest news with #CVS
Yahoo
9 hours ago
- Business
- Yahoo
How Democrats can pull off a win under a GOP trifecta: Dismantle the "legal" drug cartel
Just before President Trump pushed her out at the behest of his corporate donors, former Federal Trade Commission chairwoman Lina Khan released a damning report about the most rapacious and anti-competitive actors in the entire healthcare system: pharmacy benefit managers. These middlemen in the drug supply chain don't discover new medicines. They don't manufacture them. They don't even physically dispense most prescriptions. Yet they rake in tens of billions of dollars each year by driving up costs for everyone else — especially patients battling cancer, HIV, heart disease, and autoimmune conditions. In their report, FTC investigators documented how the PBM industry — which is dominated by just three firms, CVS Caremark, Express Scripts, and OptumRx, that collectively oversee roughly 80% of all prescriptions dispensed nationwide — imposed eye-popping markups on generic drugs used to treat deadly diseases. The PBMs' affiliated pharmacies charged hundreds — even thousands — of percent more than they paid to acquire drugs like the cancer treatment Gleevec and multiple sclerosis medication Ampyra. This isn't just a case of corporations being greedy. It's the result of a rigged market structure. In theory, pharmacy benefit managers could play a valuable role by negotiating with drug manufacturers for lower prices. Since they haggle on behalf of health plans that collectively enroll hundreds of millions of Americans, these PBMs have considerable leverage, and should theoretically drive a hard bargain and win enormous discounts. And in fact, they do. The problem is that those savings rarely flow to patients at the pharmacy. Instead, PBMs have made the supply chain so convoluted that almost nobody on the outside — whether the patient filling the prescription, the pharmacist dispensing it, the doctor writing it, or even the employer sponsoring the health plan — can easily tell how much a drug will cost after discounts, rebates, and various fees and clawbacks are applied. This opacity isn't an accident. It's by design. The lack of transparency enables PBMs to overcharge patients and health plans. Congressional investigations have revealed numerous instances in which PBMs steered patients towards more expensive drugs — which come with bigger discounts and rebates for the PBM — "even when there are lower-cost and equally safe and effective competing options" available. Some of the largest PBMs have even created offshore shell corporations to help pocket negotiated rebates — instead of passing them off to patients. Patients don't even realize when they're being ripped off. PBMs almost never disclose the total discounts they negotiate on specific drugs. So patients' cost-sharing obligations are calculated based on a drug's unnegotiated, inflated "list price," rather than its true discounted price. As a result, patients spend billions more out-of-pocket than they otherwise would if the discounts were publicized. These inflated costs are a key reason that 21% of American adults have skipped filling a prescription in the past year due to affordability concerns, while 12% have skipped doses or cut pills in half. The FTC also found clear patterns of self-dealing, where PBMs steered the most profitable prescriptions to their own affiliated pharmacies while boxing out independent community pharmacies. Thousands of independent pharmacies have closed in recent years, leaving entire counties without a single brick-and-mortar store where patients can fill a prescription. Finally, PBMs use their consolidated power to keep drugs off of health plan formularies — unless manufacturers pay exorbitant fees. This is a policy failure. But it's also a political opportunity. Congress has previously considered two bipartisan bills that would rein in PBMs' worst abuses. If reintroduced and passed, one bill would eliminate the perverse incentive for PBMs to favor expensive drugs by delinking PBMs' compensation from list prices. Another would require that negotiated discounts be passed directly to patients at the pharmacy. And just last month, FTC Chair Andrew Ferguson reignited an FTC lawsuit against pharmacy benefit managers (PBMs) that accuses them of anticompetitive behavior. Democrats have a chance to lead — and win — on this issue. Taking on PBMs doesn't just lower drug costs. It shows voters that we're willing to fight the entrenched interests hurting their families and their finances. It shows that we're the party that puts patients ahead of profiteers. We don't need to wait for the next election. We just need the political will to act.
CBS News
a day ago
- Business
- CBS News
Rite Aid customers want to know next steps as Giant Eagle takes over some prescriptions
Rite Aid customers want to know next steps as Giant Eagle takes over some prescriptions Rite Aid customers want to know next steps as Giant Eagle takes over some prescriptions Rite Aid customers want to know next steps as Giant Eagle takes over some prescriptions As Rite Aid locations shut down across Southwestern Pennsylvania, many customers are trying to figure out their next steps to get their prescriptions. Some customers won't have to do anything. That is, if they're okay with their prescriptions and their information being transferred to Giant Eagle. For 78 of the locations closing in Pennsylvania and Ohio, it will be transferred to Giant Eagle. Mary Castillenti is a little frustrated that the Rite Aid in O'Hara Township is set to close, and before it does, she made sure to get there early Friday morning, to be first in line to transfer her prescriptions to another pharmacy. "It's like one more thing," Castillenti said. "I just want to make sure it goes to where I want it to go." After the drugstore chain filed for bankruptcy again, it announced transactions to sell its prescriptions to stores like CVS and Walgreens. Now, Giant Eagle said it reached a deal to do the same. The process will happen in waves in June, with the 78 locations closing. The first 30 will take effect by the end of next week. Giant Eagle will also take over the physical pharmacies at two of the Rite Aid locations, yet to be announced. It's unclear what retailers will take over prescriptions from the other closing locations in the region. Jannah Drexler, a spokesperson for Giant Eagle, said that on the effective date set for a Rite Aid location to transfer its information, it will automatically be sent to the closest Giant Eagle. "Their prescription information that they house in those stores, due to regulatory reasons, has to have another designated home," Drexler said. If you want to go to a different Giant Eagle location, you can. If you don't want to use Giant Eagle, you can transfer it to another retailer, either before the effective transfer date through your Rite Aid location, or after, through Giant Eagle. "We're really trying to make this as smooth a transition as possible for them," Drexler said. Drexler said the company is reaching out to affected Rite Aid customers to let them know about the change and is actively trying to expand its pharmacy team to meet the new demand, including with some of the Rite Aid employees. They'll also be extending hours at many locations. KDKA reached out to Rite Aid for comment, but didn't hear back by airtime. First Rite Aid locations to send prescriptions to Giant Eagle
Perth Now
a day ago
- Entertainment
- Perth Now
Rosie O'Donnell reveals if she 'regrets' moving to Ireland following the election of President Donald Trump
Rosie O'Donnell has "never" regretted moving to Ireland. The 62-year-old comedienne revealed earlier this year that she and her youngest child Clay, 12, had left the US after Donald Trump was re-elected as president, and has now embraced the "friendly and intimate" way of life that she has discovered in her new home. She told Variety: "Never, for one moment since I arrived here, did I regret my choice. People have been so welcoming, so accepting, and they have a different view of celebrity in the culture here. They are not prioritized over other people. People are much more friendly and intimate with each other in a real way. Every time I go into the pharmacy, I fall in love, because the pharmacist talks to you. Have you ever spoken to a pharmacist at CVS? The 'Flintstones' star even believed that the pharmacist had a crush on her thanks to their civil approach and insisted that she just has a "beautiful way of life" now. She said: "I call my friends every time, going, 'I think the pharmacist has a crush on me.' But it's a beautiful way of life. The smallness of this nation fits me very well." Meanwhile, the former talk show host - who was previously married to Kelli Carpenter and Michelle Rounds - recently made a guest appearance on 'Sex and the City' spin-off 'And Just Like That' as a brief love interest for Cynthia Nixon's character and explained that she can "understand the struggle" of women who only come to accept their sexuality later on in life. She said: "100%. I know many women who only come to it in their 40s, and how hard it is when they set up a life with a man and children, and then they come to realize this basic thing about themselves. I understand their struggle. It was a relatable character — somebody who, for all different reasons, wasn't able to be in touch with who they were, and then came to find the beauty that awaits the rest of her life. "
Yahoo
a day ago
- Business
- Yahoo
CVS and Express Scripts sued to block a new law restricting drug middlemen
CVS and Cigna-owned Express Scripts filed lawsuits Thursday to block an Arkansas law that tries to curb the power of pharmacy benefit managers (PBMs) in the state. PBMs, also known as drug middlemen, are third-party administrators of prescription drug plans for health insurers. They negotiate with pharmaceutical companies over how much a health plan will pay for a drug and set the out-of-pocket costs for patients. Arkansas Gov. Sarah Huckabee Sanders signed a law last month that banned PBMs from owning and operating pharmacies in the state, saying at the time that they 'have taken advantage of lax regulations to abuse customers.' The legislation came following two reports from the Federal Trade Commission and the House Committee on Oversight and Accountability last year that accused PBMs of reaping massive profits by pushing patients to pay for more expensive drugs, including life-saving cancer medicine. Supporters of the Arkansas law, which goes into effect in January, claimed it would also greatly help independent pharmacies, which can't compete with PBM-owned chains like CVS. In its lawsuit Thursday, CVS said the legislation will force it to close 23 pharmacies in the state, eliminating hundreds of jobs, and claimed the ban would 'drive-up costs for Arkansans.' CVS, which declined to further comment, said in their press release that the law violates the Dormant Commerce Clause, a part of the Constitution that restricts states from discriminating against or unfairly burdening out-of-state businesses. It also said the law violates the company's Equal Protection rights. Susan Peppers, vice president of pharmacy practice for Evernorth Health Services, which runs Express Scripts and is owned by Cigna, said in a press release that 'if this law takes effect in January, hundreds of thousands of Arkansans will be left scrambling to navigate the forced closure of pharmacies and finding new ways to get their medicines and critical clinical support.' While advocates say the law will help rural Arkansans whose local pharmacies can't stay afloat, Express Scripts is claiming the opposite. The law 'could be especially challenging for the more than 40% of Arkansans that live in a rural area and may not have easy access to a retail pharmacy,' it said. In a statement to Quartz, Arkansas Attorney General Tim Griffin defended the legislation. 'Pharmacy benefit managers wield outsized power to reap massive profits at the expense of consumers,' he said. 'Through Act 624, Arkansas is standing up to PBMs on behalf of consumers, and I will vigorously defend our law.' For the latest news, Facebook, Twitter and Instagram.
Indianapolis Star
a day ago
- Business
- Indianapolis Star
Red Bull, shower gel and condoms are locked up. Shopping is indignity.
Aside from high prices, one of my biggest annoyances while shopping is finding an item locked in a display case. If you're out shopping this weekend, chances are you'll encounter sticker shock along with padlocked products. To access items in a case, you must press a button and wait for assistance or track down a worker to have them open the case for you. In most instances, if it takes too long for a worker to help me, I'll leave and go to a different store. It's not just cosmetics or copper wire in cases, if you're looking to throw a steak on the grill, it might be wrapped in its own little steel case to deter theft. My wife goes to grocery stores outside of where we live just for better produce selection and a more peaceful shopping experience. However, not everyone has that option. Retail giants such as CVS, Walgreens, Target and Walmart are intensifying security measures to combat the rising tide of theft. While these protective steps aim to deter criminals, they simultaneously create frustrations among honest shoppers. And, worse yet, we never seem to get at the root of the problem that's driving theft. When Donald Trump assumed the presidency, he pledged to enhance the economy and reduce the costs of food and other goods. However, after more than 100 days in office, the Trump administration policies have been detrimental to those in the lower and middle classes. Remember the fixation on egg prices during the campaign? Today, egg prices are higher, not lower. The cost of everything is expected to keep climbing with economists revising forecasts for the inflation rate and many now predicting it could reach the 4% mark. This anticipated increase has been attributed to several factors, notably the expected impact of Trump's tariffs, which will likely raise American consumers' prices for imported goods. Briggs: Fishers, Carmel don't think renters deserve single-family homes Higher prices are directly linked to an increase in retail crime, which is becoming an increasingly serious problem for American businesses. In 2022, losses from retail theft amounted to $112 billion, and this alarming trend is projected to exceed $150 billion by 2026. The situation is expected to worsen for retailers as states face significant cuts in federal funding for essential programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Desperate times arise as people's budgets tighten, creating a perfect storm for increased retail crime. During a recent visit to a Walgreens on Milwaukee's north side, I was struck by the sight of many products locked behind security panels. Some securely encased items included deodorant, Red Bull, shower gels, dish soap, laundry detergent, baby formula, and even condoms, which were locked in rigid plastic containers. I needed shower gel, so I pressed the buzzer. A chime sounded over the loudspeaker, followed by a computer voice announcing, 'Customer needs assistance in the health and beauty aisle.' After several minutes, a store employee came to assist me and asked how she could help. Hicks: Why tariffs lead to recession, even after Trump caved to China She fumbled with the keys until she found the right one to open the cabinet. I opened a few gels to smell their fragrances before settling on a citrus scent. I always do that, but the store employee was in a hurry. She asked me if I intended to make any additional purchases. When I told her no, she took the gel from my hand and instructed me to follow her to the checkout register. Curious, I asked her if people steal often. Her reply: "All the time." Walgreens CEO Timothy Wentworth said during a Jan. 10 call with investment analysts that putting more products in locked display cases "does impact how sales work through the store because when you lock things up, for example, you don't sell as many of them." Wentworth is right. You can't lock everything up in a store because if you do, you no longer have a store and turn customers away. However, while Walgreens says you can't keep locking things up, retail giant Walmart shocked some shoppers when it placed rows of steak cuts in small metal wire cages. An April 8 TikTok video showcasing the meat garnered 2 million views and thousands of angry comments. However, this isn't a new tactic, another TikToker posted a similar video from Walmart in 2022. The central question is how far businesses will go to combat retail theft. Will they start locking more items behind glass, hire additional security guards or install more cameras? Equally important, can we expect anything meaningful from our leaders in Washington or Madison to address why theft is on the rise? I'm not hopeful. We only need to review Trump's speeches on the campaign trail to understand what he really thinks. In Pennsylvania last fall, he noted that New York City and San Francisco stores are already locking their merchandise behind glass doors to prevent theft. Trump's proposed solution is 'one rough hour' of law enforcement to deter retail theft. 'We have to let the police do their job. And if they have to be extraordinarily rough ...' Trump said, eliciting cheers from the crowd. Briggs: Indiana hides executions. Firing squads would be more honest. His proposal sounds reminiscent of a concept from a movie like 'The Purge," a dystopian film set during a time of rampant crime and economic inequality where the government sets aside an annual 12-hour period where any crime is allowed to settle scores. How about paying people a fair wage, especially as the prices of basic goods and food continue to rise? According to the U.S. Department of Agriculture, food prices are projected to increase by 3.5% this year, with a predicted range of 1.9% to 5.1%. Indiana is one of 20 states with a minimum wage of $7.25 per hour, unchanged since 2009. As food costs keep climbing and the possibility of a recession grows, we can't expect to see any relief. There is plenty of blame for retail theft and its causes, and both parties — Democrats and Republicans — share the responsibility. Many people blame parents for not monitoring their children's stealing, but most videos highlight adults engaging in theft. While I don't condone stealing, my feelings about it vary based on what the person is taking. For example, if someone steals a car and drives recklessly or crashes it, I believe they should face serious consequences. If someone steals a TV or designer clothing to show off on social media, I have little sympathy for them. Opinion: Indiana prides itself on work. What happens when AI takes our jobs? However, my perspective changes when it comes to stealing essential items. If someone steals baby formulas, diapers, or food because they are hungry and their SNAP benefits don't stretch far enough, I have sympathy for their situation. A senior stealing medication would garner my sympathy more than anger. Given the current circumstances, we must consider raising the minimum wage and increasing wages for those just a paycheck or two away from severe financial distress. Recklessly slashing federal programs and the VA is only going to make things worse. Addressing these underlying issues early on is far more effective if we want to reduce retail theft. Otherwise, we may find items locked behind cabinets and possibly encased in barbed wire in the future.
