The Wall Street Journal Editorial Board published a recent editorial on the latest assault on free market forces in our economy from the Biden-Harris Federal Trade Commission (FTC) under the radical tenure of far-left Chairwoman Lina Khan.

The Editorial Board calls out that the Commission’s recent lawsuit targeting pharmacy benefit managers (PBMs), highlighting how it could increase health care costs for Americans:

“Lina Khan claims she’s trying to lower prices, but the Federal Trade Commission Chair’s attacks on business often do the opposite. Consider her new charge against pharmacy benefit managers (PBMs), which could result in higher healthcare premiums for all Americans.”

The editorial explains the misguided thought process from the FTC to target rebates for somehow increasing prescription drug costs when in reality health plan sponsors, such as employers, have the decision making power to decide what to do with the savings – the power lies within the health plan sponsor and the government should not interfere:

“As the FTC complaint notes, health plans can mitigate high list prices “by applying drug rebates directly at the pharmacy counter when the patient purchases the drug”—known as a point-of-sale rebate. It says employers aren’t doing this, but why is that the PBMs’ fault?”

The FTC uses a recent interim staff report as basis for their enforcement action. When the FTC’s interim report was released, Republican commissioners raised concerns over the report’s lack of empirical data and the process under which it was established. The enforcement action represents the next step in Lina Khan’s mission to undermine American business and carry out an assault against our free market. The Editorial Board notes:

“Democratic commissioners on Friday voted 3-0 to bring a complaint against PBMs for extracting rebates from drug makers in return for preferential placement on insurer formularies. The agency filed the charges in its administrative tribunal where it nearly always wins. (The two Republican commissioners were recused.)”

The editorial explains that the FTC’s suit plays into the hands of Big Pharma:

“She’s seeking to effectively ban PBM rebates by deeming them an “unfair method of competition” under the Federal Trade Commission Act. You have to smile at Ms. Khan portraying big drug makers as victims in her suit.”

The WSJ’s Editorial Board pokes holes into the FTC’s assertions that rebates are increasing prescription drug costs, specifically highlighting how Congress corrected course before a previous ban on rebates went into effect:   

“If rebates are a problem, why does Congress require them for government plans? Drug makers must pay Medicaid rebates that start at 23.1% of a medicine’s average price and can exceed 100%. The Trump Administration tried to ban rebates in Medicare, but the Congressional Budget Office estimated it would substantially raise senior premiums and increase government spending by $170 billion over 10 years. Congress blocked the rule. Yet now Ms. Khan wants to ban rebates in private insurance.”

The Editorial Board concludes by asserting that Lina Khan, following in the steps of the Left’s government to disrupt the health care system with overregulation that lead to increased costs, would only exacerbate health care spending:

“Government has made a mess of healthcare financing, and Ms. Khan would make it worse.”

Conservatives should reject the Khan-driven assault on market-forces in our economy, especially the assault on the cost-saving role of PBMs in the prescription drug market.

Read the full editorial from The Wall Street Journal HERE.