The FTC’s Targeting of Drug-Inflating PBM Practices

The Federal Trade Commission's (FTC) July 2026 landmark settlement with CVS Caremark highlights a pivotal moment in the ongoing battle over pharmacy benefit manager (PBM) business practices.¹ The agreement, which targets the artificial inflation of drug prices through rebate-driven models, seeks to bring billions in savings to patients.

For pharmacy professionals navigating this shifting landscape, Drug Topics caught up with Rae McMahan, senior vice president of payor solutions at Prescryptive Health, to learn more from her perspective on where the industry is headed following the settlement.

Reflecting on more than 20 years in the field, McMahan notes that despite PBMs having entered the market with the noble intention of lowering drug costs, their operations evolved behind the scenes to the detriment of both employers and patients. As prescription medications grew more expensive, the economic motivations became clouded.

According to McMahan, the FTC's intervention represents a necessary disruption to this muddied system, creating an opportunity to finally place patients at the center of medication access and clinical decision-making.

Although she cautions that PBMs may attempt a financial “sleight of hand” to shift profits elsewhere, McMahan remains optimistic that this settlement will drive broader industry-wide reform. The agreement delinks PBM fees from drug list prices and opens the door for retail community pharmacies to adopt fairer cost-plus reimbursement models.¹

Industry professionals seeking a deeper understanding of this regulatory shift will be well-equipped with McMahan’s expert look into the industry-wide impact this settlement could potentially have.

READ MORE: Pharmacy Law Lowdown: Copay Collection Compliance

REFERENCE

FTC secures major settlement with Caremark, resolving antitrust case against second drug middleman. News Release. FTC. July 14, 2026. Accessed August 6, 2026. https://www.ftc.gov/news-events/news/press-releases/2026/07/ftc-secures-major-settlement-caremark-resolving-antitrust-case-against-second-drug-middleman