09:32 AM EDT, 07/23/2024 (MT Newswires) -- (Adds additional details in third, fourth, fifth paragraphs.)

Pharmacy-benefit managers have concocted formularies of preferred medicines that favor higher-priced drugs over lower-priced alternatives, The Wall Street Journal reported Friday, citing a House Committee on Oversight and Accountability report it reviewed.

The PBMs have also made patients pay more to use a local pharmacy over a mail-order pharmacy affiliated with the manager, The WSJ reported, citing the report.

The House committee report findings cited emails from Cigna's ( CI ) Express Scripts staff discouraging the use and discussions of cheaper alternatives to the arthritis drug Humira due to the potential rebate impact, according to The WSJ.

The committee issued its report following a 32-month investigation, and ahead of a hearing on PBMs scheduled to take place Tuesday, where executives from the largest firms -- Express Scripts, United Health's (UNH) OptumRx, and CVS's (CVS) Caremark -- are set to testify, the report said.

The report added the Federal Trade Commission plans legal action against PBM's pricing tactics over insulin and other drugs.

Express Scripts, OptumRx, and Caremark have not immediately responded to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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