Tag: coordinated interaction

The FTC filed a lawsuit against the three largest prescription drug benefit managers (PBMs)—Caremark Rx, Express Scripts (ESI), and OptumRx—and their affiliated group purchasing organizations (GPOs) for engaging in anticompetitive and unfair rebating practices that have artificially inflated the list price of insulin drugs.

San Juan IPA, Inc., an independent physician association in Farmington, New Mexico, has agreed to pay a $263,000 civil penalty to the FTC to settle allegations that it violated a 2005 order. The 2005 case alleged that San Juan IPA orchestrated agreements among competing member physicians to coordinate joint pricing, collectively negotiated contracts with payors on behalf of members, and refused to deal with payors except on collectively determined price terms.

To remedy these allegations, the 2005 order prohibited San Juan from, among other things, entering into, maintaining, enforcing, or facilitating any agreement or understanding among any physicians (1) to negotiate on behalf of any physician with any payor, (2) to deal, refuse to deal, or threaten to refuse to deal with any payor, (3) regarding any term upon which any physician deals with a payor, including price terms, and (4) not to deal individually with any payor or not to deal with a payor except through the IPA. The order also prohibited San Juan from attempting to engage in, or encouraging any person to engage in, any prohibited action.

The Federal Trade Commission filed an administrative complaint against the Louisiana Real Estate Appraisers Board, alleging that the group is unreasonably restraining price competition for appraisal services in Louisiana, contrary to federal antitrust law. The complaint alleged that the appraisal board’s regulations exceeded the scope of the mandate outlined in the Dodd-Frank Act that required appraisal management companies to pay “a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised.” Specifically, the board required appraisal fees to equal or exceed the median fees identified in survey reports commissioned and published by the board. The board then investigated and sanctioned companies that paid fees below the specified levels. 

Shortly before the administrative trial was set to begin, the FTC and the board reached a proposed settlement agreement.

On April 5, 2022, the Commission announced the final consent agreement in this matter.