The Federal Trade Commission testified on a proposed antitrust exemption for independent pharmacies before the U.S. House Judiciary Committee’s Subcommittee on Intellectual Property, Competition, and the Internet. H.R. 1946, “Preserving Our Hometown Independent Pharmacies Act of 2011,” would allow community pharmacies to engage in collective bargaining for higher fees and better contract terms from health plans.
The FTC argued that the exemption would lead to diminished competition and innovation. The decreased competition would then lead to price increases in health care–health plans would have to pay higher drug dispensing fees to pharmacists that would then be passed on to consumers.
Full content: FTC Press Release
Related content: Competition Come Full Circle? Pending Legislation to Repeal the U.S. Railroad Exemptions (Chris Sagers, Cleveland-Marshall School of Law)