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Roger Hickey 202-270-0300
Jacob Sorrells: 301-807-1459
A large and growing number of Democratic activists and thinkers have joined together to pledge to fight for an economic agenda that can win the support of a broad majority of American voters. And they are demanding that politicians - including presidential candidates - tell voters where they stand on the 11 planks of the group's economic agenda. And they vow to share candidates' answers online.
The 90 well-known progressives - many of them leaders of the "resistance" to Trump and organizers of 2018 election victories - who wrote and signed the Agenda for Good Jobs, Sustainable Prosperity and Economic Justice represent a group that goes well beyond any one issue or activist network. They are a diverse mix of millennials, GenXers and Baby Boomers, and many of them have long histories of working on one or more of the 11 planks of their shared economic agenda. All agree that the country needs bold systemic change. And they believe that "for too long, leaders of both major political parties have allowed the wealthy and the giant corporations to exercise far too much influence over the political decisions that shape American life."
To talk with Pledge Signers, contact Jacob Sorrells: 301-807-1459
The full Pledge/Agenda has been signed by over 20,000 people.
One of the organizers of the group, Roger Hickey, Co-Director of the Campaign for America's Future, said the Pledge represents yet another indication that the country is moving in a progressive direction. And, he said, "This economic agenda is broadly popular with strong majorities of American voters." He cited a section of the group's new website which assembles recent polling showing great support for the 11 planks of the economic agenda. "Most Americans - base voters, a majority of independents, and many disillusioned Trump voters - all hard-hit by growing inequality and angry about a system they see as rigged by the wealthy - will vote in great numbers for candidates who campaign for a comprehensive plan for growth, investment and economic justice."
Another signer, Nancy Altman, President of Social Security Works, said, "Criticizing Trump is important - and there is plenty to criticize - but it's not enough. Visionary political leaders, FDR among them, have always fought for working Americans. The roadmap in the Pledge to Fight for Good Jobs, Sustainable Prosperity, and Economic Justice, of which I am a proud signer, shows the way."
Other Pledge signers include former Labor Secretary Robert Reich, economists Thea Lee, Robert Pollin and James K. Galbraith, African-American activists Rashad Robinson and Janet Dewart Bell and Dedrick Asante-Muhammad, feminist leaders Gloria Steinem, Nita Chaudhary and Toni Van Pelt, think tank directors Heather McGhee, Dorian Warren, Chuck Collins, and Angela Glover Blackwell, environmental leaders Bill McKibben, Annie Leonard and Michael Brune, labor leaders Leo Gerard, Larry Cohen, Randi Weingarten, Chris Shelton, and Bonnie Castillo, business leaders, like Leo Hindery Jr. and Charles Rodgers, activists and public intellectuals, like Manuel Pastor, Robert Borosage, Maria Echaveste, Jeff Faux, Heather Gautney, Eddie Glaude Jr., Zephyr Teachout, Richard Eskow, and Naomi Klein. Signers also include leaders of "resistance movement" groups, including MoveOn, People's Action, Democracy for America, Solidaire, Progressive Change Campaign Committee, Center for Popular Democracy Network, Public Citizen, Working Families Party, Ultra-Violet, Progressive Democrats of America, and Our Revolution.
As they release their agenda, signers made it clear that the group will not endorse candidates; however they will ask candidates - including candidates for president - to outline publicly their plan for addressing 11 planks of their Pledge. And make those answers public on a website that compares all the candidates.
They also make it clear that, no matter the outcome of the next elections, they will continue to honor their pledge to build a movement for economic change - a movement that all future office-holders will have to deal with.
Below is a simple version of the Pledge and its economic agenda - grouped into 5 broad themes - followed by the complete, detailed version that has now been signed by 20,000 people and counting.
We will (continue to) resist Trump. But resistance is not enough.
We therefore pledge that:
- We will fight for good jobs, sustainable prosperity and economic justice.
- We will work to build a movement that can make that agenda a reality.
Real change begins with a clear and coherent vision of a better America, and with citizens' movements dedicated to bringing that world into being. We offer this agenda for economic change in that spirit. (See full Agenda here - or below - view the prominent signers.)
I. Jobs for All - by Investing in Rebuilding America and a Green New Deal
II. Fight Inequality
III. A New Social Contract - for Income and Retirement Security - and Healthcare and Education for All
IV. Stop Corporations, Banks and the Wealthy from Controlling Our Economy and Our Democracy
V. A Global Economic Strategy for Working People
Full Agenda (below and online at this link):
Pledge to Fight for Good Jobs, Sustainable Prosperity and Economic Justice
I. Jobs for All - by Investing in Rebuilding America and a Green New Deal
1. Jobs for All - Created by Rebuilding America
We should commit ourselves to providing a high quality job (with good wages and benefits) for everyone willing and able to work. This cannot be achieved through tax cuts for the rich.
We support a large national investment program to put millions of American to work rebuilding America, creating useful employment for young people and for the millions of workers made unemployed by the deindustrialization of America.
The rebuilding and modernization of our basic infrastructure -- from roads to rail to water and energy systems --will stimulate robust growth and it will make our economy more productive. This initiative should be linked to public service jobs -- in everything from national service to cleaning up parks and cities. As a first step, the next administration should guarantee that every young person graduating from school can get a decent job.
2. Invest in a Green Economy
Catastrophic climate change is a clear and present danger. The United States should lead the global green industrial revolution that builds strong and resilient communities.
That requires strategic public investment in renewable energy and energy efficiency that will replace a carbon-based economy with a clean and sustainable energy system, creating jobs and opportunity, particularly in communities of color that have borne the worst consequences of toxic corporate practices.
Renewable energy and energy efficiency are already rapidly expanding. But we need a public commitment to meet clear goals to replace carbon-based energy sources, create new green energy industries, and meet global emission targets. The country that leads in these areas will capture jobs generated from markets across the world.
II. Fight Inequality
3. Empower Workers to Reduce Inequality
Inequality has reached new extremes. As the corporate elite pulls in incomes, perks, and tax breaks beyond the imagination of kings, wages for the rest of us have stagnated or declined - and more and more jobs have become contingent and part-time, with low pay and few benefits.
Robust economic growth and full employment, if we can achieve it, will force employers to bid up wages. But the key to reversing inequality is strong unions. We pledge to fight for the right of workers to form unions and bargain collectively for better wages and benefits. Guaranteed labor rights should be complemented by action to lift the floor under every worker by guaranteeing a living wage, paid sick and vacation days, and affordable health care. We must curb CEO compensation policies that give executives personal incentives to plunder their own companies. And we should use the tax system to reward companies that pay their workers a decent proportion to what they pay their executives.
4. Opportunity and Justice for All - With Focus on Communities Harmed by Racism
Full employment should provide opportunity for all. But special attention must be invested in those communities harmed by the legacy of Jim Crow, segregation, discrimination, deindustrialization, and destruction of the public sector.
Scapegoating on the basis of race, nationality, gender, or sexual orientation works to the detriment of all of us and to the benefit of those minions of corporate and Wall Street power who would divide us. Neglected urban and rural communities, working people victimized by the worst economic and social effects of neoliberalism must be given targeted attention and investment. Fundamental reform of our criminal justice system, an end to mass incarceration, and targeted investment in areas of need are all central to meeting the promise of economic justice.
Establishing a fair and humane immigration policy that stops the criminalization of communities of color should be a top priority. Our immigration policy should put the sanctity of families at the forefront--grounded in human, civil, and labor rights. We cannot allow our communities to be divided by anti-immigrant and xenophobic hysteria. And we must all work hard to end the racism and xenophobia that have historically been used to divide America's working class majority from working together to win economic justice and prosperity for all.
5. Guarantee Women's Economic Equality
Until 1920 most women could not vote in federal and local elections. And until very recently, women's economic rights -- to own a business or even control wealth or property -- were severely limited.
We have now gone from a society in which women were expected to handle home and family work to one where women are expected to earn money in the workplace -- and still take care of home, children, and family.
We should guarantee that women earn the same pay, protections and opportunities as men in the workplace and in society - including strengthened laws for reporting and preventing sexual harassment. Women must also be guaranteed affordable health care and the right to make choices about their own health and reproduction. Families must have access to high-quality child care, and all women must be guaranteed paid leave from the workplace for childbirth, illness and vacation, and a secure retirement -- with Social Security credit for work in the household.
III. A New Social Contract - for Income and Retirement Security--and Healthcare and Education for All
6. Medicare for All - And Shared Economic Security
Health care is a right, not a privilege. And that requires moving to a Medicare for All universal public health care system. Our fight to defend Obamacare from Trump and his allies is a crucial first step to a promise of quality health care for everyone. In addition, America needs a more robust social insurance system.
Every worker deserves a secure retirement-- and we will work to create new pension systems, while we secure Social Security by "lifting the cap" that now exempts wealthy people from paying their fair share of Social Security taxes. We will strengthen and expand America's shared security programs -- Social Security, Medicare, Medicaid, unemployment, food support and housing assistance. No one in America should go hungry or homeless. Greater shared security makes the economy more robust by making our society more fair - and giving all people the confidence that comes from solidarity.
7. High-Quality Public Education - Pre-K to University
Every young person must have the right to high-quality, free public education from preschool through college. Public education must be controlled by the public -- not by corporations -- and not by charter school hucksters who take public subsidies without assuming the responsibility to educate all kids, regardless of special needs.
This requires that every community, in partnership with the Federal Government must have the financing necessary to strengthen public schools, providing the necessary basics - preschool, smaller classes, summer and after-school programs, and skilled, well-paid teachers with rights on the job.
College education or skills training should be available without tuition at all public universities as a right of civic membership -- as was the policy in many states in the 1950s and 1960s. Education should be a public good that benefits all of society, not a commodity that indentures students to debt. We call for a national student debt jubilee that will cancel the debt burden imposed upon several generations seeking an education. Free college and debt cancellation will not only allow students and former students to live their lives without that burden, but it will also stimulate economic growth and unleash new civic activism.
IV. Stop Corporations, Banks and the Wealthy from Controlling Our Economy and Our Democracy
8. Make Corporations and the Wealthy Pay Their Fair Share
Our public investment/growth and justice agenda requires tax revenues. Yet the corporations and the rich do not pay their fair share in taxes--even though they pocket the greatest benefits from public investments.
Our tax code rigs the rules to favor the few. Multinationals pay lower tax rates than small domestic businesses. Billionaire investors pay lower rates than their secretaries. Top income tax rates have been lowered even as working people face ever-higher sales taxes and fees.
It is time for the rich and corporations to pay their fair share of taxes. It is time to shut down the tax havens and tax dodges that enable companies to avoid taxes altogether. We should lift the cap on Social Security taxes, so rich people pay the same percentage of their income as the rest of us. We should tax the income of investors at the same rates we tax income from work. We need clear, simple, progressive corporate and individual taxes, closing loopholes and exemptions. And a tax on financial transaction can produce significant revenues. A fair tax system will allow us to invest in an economy that will work for all.
9. Close Wall Street's Casino
Financial deregulation has devastated our economy, and it has protected banks that are too big to fail, too big to manage, and too big to jail.
The financial casino fosters ever more dangerous speculation, while investment in the real economy lags. The resulting booms and busts devastate families and small businesses.
In a new age of corporate concentration, American must revive the concept of anti-trust action to reduce corporate power. We need to break up the big banks, levy a speculation tax, and provide low-income families with safe and affordable banking services. We should crack down on payday lenders and other schemes that exploit vulnerable working families, offering instead safe and inexpensive banking via the postal system.
10. Rescue Democracy from the Special Interests
Big money has corrupted our democracy. Some might say democracy is not part of an economics agenda. But the same financial elites and corporations that buy and sell politicians use that political power to rig the economy so the top .01 percent gets massively richer while incomes decline for the rest of us.
The Citizens United decision gave corporations the right to spend unlimited money in politics. We pledge to reverse it, through a constitutional amendment, if necessary.We will stop the attack on voting rights which has escalated just as a new majority of people of color, young people and working women has begun to exercise new power. We will fight for public financing of elections that bans corporate and big money - and for electoral reforms, like public matching of small donations, so people's candidates can compete with the candidates of the plutocrats. Finally, we pledge to change national and local political party structures so that progressive candidates get a fair shake in the nominating process and in general elections. And we will build a new progressive majority that can take back our democracy and our economic system.
V. A Global Economic Strategy for Working Americans
11. A Global Economic Strategy for Working Americans
Our global trade and tax policies have been created for and by multinational companies. We must renegotiate trade deals and rethink tax policies that benefit the already-wealthy, while they encourage the export of whole American industries, drive down pay and worker protections, and harm the environment.
We need more but balanced trade, and global standards that protect the rights of workers, consumers and the environment.
That requires a crackdown on tax havens, currency manipulation, and deals that allow corporations to trample basic labor rights here and abroad. Finally, we need new policies that allow us to help existing US industries, by having our government buy American, policies that are now outlawed by trade deals. And we need active investment policies that grow new cutting-edge industries, like green energy systems. Our current national security policies commit us to policing the world. The result costs lives and drains public resources. We need a real security policy that makes military intervention a last resort, and focuses on global threats like climate change, poverty and inequality. We should reduce military budgets and properly support humanitarian programs.
The Campaign for America's Future is the strategy center for the progressive movement. Our goal is to forge the enduring progressive majority needed to realize the America of shared prosperity and equal opportunity that our country was meant to be.
"As a cease-fire in Gaza is near, Israel is expanding its assault on the West Bank," said one expert. "It was always a war on Palestinian existence."
As negotiators in Qatar navigated the " final stage" of a cease-fire agreement to end the U.S.-backed Israeli assault on the Gaza Strip, Israel's forces on Tuesday continued to kill Palestinians in the besieged coastal enclave and the illegally occupied West Bank.
Since the Hamas-led October 7, 2023 attack, the Israel Defense Forces (IDF) have killed at least 46,645 Palestinians in Gaza and wounded 110,012, with over 10,000 others missing, health officials said Tuesday. The true death toll could be much higher. A peer-reviewed analysis published last week in The Lancetfound that the official tally through last June was likely a 41% undercount.
The Palestinian National Authority's news agency WAFA reported Tuesday that IDF shelling killed at least two civilians at the Nuseirat refugee camp and a correspondent in Gaza City "said that Israeli warplanes fired missiles at a house in the Sheikh Radwan neighborhood, north of Gaza City, and another house in the Manara neighborhood, south of Khan Younis City, killing several civilians and injuring others."
According to multiple media outlets, Israeli forces also killed at least 13 people in an attack on a home in Deir al-Balah.
Israel faces a genocide case at the International Court of Justice over its assault on Gaza and in November the International Criminal Court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and his former defense minister, Yoav Gallant, as well as Hamas leader Mohammed Diab Ibrahim Al-Masri.
In addition to waging war on Gaza over the past 15 months, Israel has stepped up its military activity in the West Bank—where a Tuesday strike on the Jenin refugee camp killed at least six Palestinians and wounded several others. The Times of Israelreported that "the IDF said it carried out the strike in a joint operation with the Shin Bet, without immediately providing further information."
The Israeli newspaper also noted that "on Tuesday evening, as on many previous Tuesday nights, thousands gather for a unity rally of prayer and song held in Tel Aviv's Hostages Square," while hundreds of right-wing demonstrators blocked "an intersection in central Jerusalem, in protest of the ongoing hostage negotiations between Israel and Hamas."
According to a draft obtained by The Associated Press, the first part of the three-stage deal would involve a halt to the fighting, both sides releasing captives, displaced Palestinians in Gaza returning home, and more humanitarian aid entering the strip.
Phase two would feature a declaration of "sustainable calm" and Hamas freeing more hostages in exchange for additional Palestinian prisoners and the full withdrawal of Israeli troops from Gaza, AP reported. The third part would include an exchange of bodies, a reconstruction plan for the strip—where civilian infrastructure is in ruins—and the reopening of border crossings.
"The terms of the deal being negotiated are largely consistent with what was on the table last May when outgoing President Joe Biden first announced it. Biden allowed Netanyahu to steamroll him for months—rewarding Israel with billions of dollars in arms transfers and political support after rejecting that cease-fire deal," Jeremy Scahill detailed at Drop Site News.
The latest cease-fire talks come as U.S. President-elect Donald Trump prepares for his inauguration next Monday. The Republican has been pushing for a resolution to Israel's assault on Gaza—or at least an appearance of one—before he returns to office.
"The fact that Trump emerged as the decisive player in pushing a potential cease-fire forward is evidence that Biden never used the full powers available to a sitting U.S. president to seal the deal in the summer," wrote Scahill. "While Trump has publicly repeated his threat that he will 'unleash hell' on Hamas if the Israeli hostages are not freed, his pressure has not been solely focused on Hamas; Trump and his aides have made clear to Netanyahu that the president-elect expects Israel to comply with his demands, too."
Netanyahu on Tuesday told hostages' families that "he is willing to agree to a prolonged cease-fire Gaza in exchange for their return," according toHaaretz. Later Tuesday, The Times of Israelreported that the prime minister was meeting with "Israel's hostage negotiation team and with members of Israel's security establishment," and expected negotiations to go through the night.
Even if a deal is reached regarding Gaza, some experts fear the bloodshed will continue there and in the West Bank
"There will possibly be an end to the Gaza war, but there will be now another war in the West Bank," Sami Al-Arian, a Palestinian analyst and director of the Center for Islam and Global Affairs at Istanbul Zaim University, told Scahill. "It may not be on the same scale, but it would be as vicious from the settlers, from the Netanyahu government."
Gazan writer and analyst Muhammad Shehada wrote for the U.S.-based Center for International Policy last week that a senior Arab official told him the U.S. president-elect asked the Qataris and Egyptians to finalize a deal before he takes office but the Israeli prime minister "is not budging while at the same time issuing false positive statements of a breakthrough and progress to buy time and pretend to seek a deal until Trump is in office, where Netanyahu can trade the Gaza war for something big in the West Bank."
Sharing on social media a video of the Tuesday strike on Jenin, Middle East expert Assal Rad said that "as a cease-fire in Gaza is near, Israel is expanding its assault on the West Bank. The Gaza genocide is only the most recent atrocity Israel—with the help of the U.S.—has carried out against Palestinians. The same story for 77+ years. It was always a war on Palestinian existence."
"Seriously? You wait until six days before leaving office to do what you promised to do during your 2020 campaign?" said one observer.
In a move likely to be reversed by the incoming Trump administration, President Joe Biden on Tuesday notified Congress of his intent to remove Cuba from the U.S. State Sponsors of Terrorism list, a designation that critics have long condemned as politically motivated and meritless.
Noting that "the government of Cuba has not provided any support for international terrorism" and has "provided assurances" that it will not do so in the future, the White House said in a memo that the Biden administration is moving to rescind the first Trump administration's January 2021 addition of Cuba to the State Sponsors of Terrorism (SSOT) list and take other measures to ease some sanctions on the long-suffering island of 11 million inhabitants.
Cuba's SSOT designation was based mostly on the socialist nation's harboring of leftist Colombian rebels and several U.S. fugitives from justice for alleged crimes committed decades ago, even though no other country has been placed on the SSOT list for such a reason and despite right-wing Cuban exile terrorists enjoying citizenship—and even heroic status—in the United States.
"Despite its limited nature, it is a decision in the right direction and in line with the sustained and firm demand of the government and people of Cuba, and with the broad, emphatic, and repeated call of many governments, especially Latin America and the Caribbean, of Cubans living abroad, political, religious and social organizations, and numerous political figures from the United States and other countries," the Cuban Ministry of Foreign Affairs said in a statement.
"It is important to note that the economic blockade and much of the dozen coercive measures that have been put into effect since 2017 remain in force to strengthen it, with full extraterritorial effect and in violation of international law and human rights of all Cubans," the ministry added.
For 32 straight years, the United Nations General Assembly has overwhelmingly voted for resolutions condemning the U.S. blockade of Cuba. And for 32 years, the United States, usually along with a small handful of countries, has opposed the measures. Last year's vote was 187-2, with Israel joining the U.S. in voting against the resolution.
Cuba followed Biden's move by announcing it would "gradually" release 553 political prisoners following negotiations with the Catholic Church, The New York Timesreported.
Many progressives welcomed Biden's shift. Congresswoman Nydia Velázquez (D-N.Y.) said in a statement that Cuba's SSOT designation "has only worsened life for the Cuban people without advancing U.S. interests" and "has made it harder for Cubans to access humanitarian aid, banking services, and the ability to travel abroad."
"It has also deepened food and medicine shortages and worsened the island's energy crisis, especially after Hurricane Rafael," she added. "These hardships have driven an unprecedented wave of migration, leading to the largest exodus in Cuba's history."
Rep. Ilhan Omar (D-Minn.) called Biden's move "a long overdue action that will help normalize relations with our neighbor."
"This is a step toward ending decades of failed policy that has only hurt Cuban families and strained diplomatic ties," Omar added. "Removing this designation will help the people of Cuba and create new opportunities for trade and cooperation between our nations. I look forward to continuing the work to build bridges between our countries and supporting policies that benefit both the American and Cuban people."
David Adler, the co-general coordinator at Progressive International, called the delisting "far too little, far too late."
"POTUS removing Cuba's SSOT designation in the final days of his presidency only means one thing: He knew—from day one—that the designation was simply an excuse to punish the Cuban people," Adler added. "But he maintained it anyway. Sickening."
The peace group CodePink released a statement welcoming Biden's shift, but adding that "it is unacceptable that it took this administration four years to address these injustices."
"President Biden made the inhumane decision every single day to not alleviate the suffering of millions of Cubans by keeping this designation in place," the group added. "As we mark this overdue progress, we can only hope that the Trump administration does not reverse these crucial steps towards justice and diplomacy."
Trump's nominee for secretary of state, Sen. Marco Rubio (R-Fla.) is the son of Cuban immigrants and a fierce critic of Cuba's socialist government. In 2021, Rubio introduced legislation aimed at blocking Cuba's removal from the SSOT list. Trump has also tapped Mauricio Claver-Carone—a staunch supporter of sanctioning Cuba—as his special envoy for Latin America.
Alex Main, director of international policy at the Center for Economic and Policy Research, said Tuesday that "while this decision, which comes years after 80 members of Congress urged Biden to reverse Trump's 'total pressure' approach should have been made long ago, it is better late than never."
"Sixty years of failed policy should be more than enough, and hopefully the new administration will have the wisdom and the courage to pursue a new course, one that's in the best interest of both the U.S. and the Cuban people," Main added.
Cuba was first placed on the SSOT list by the Reagan administration in 1982 amid an ongoing, decadeslong campaign of U.S.-backed exile terrorism, attempted subversion, failed assassination attempts, economic warfare, and covert operations large and small in a futile effort to overthrow the revolutionary government of longtime leader Fidel Castro. Cuba says U.S.-backed terrorism has killed or wounded more than 5,000 Cubans and cost its economy billions of dollars.
In stark contrast, Cuba has not committed any terrorism against the United States.
Former President Barack Obama removed Cuba from the SSOT in 2015 during a promising but ultimately short-lived rapprochement between the two countries that abruptly ended when Trump took office for the first time in 2017.
"Cuba will continue to confront and denounce this policy of economic war, the interference programs, and the disinformation and discredit operations financed each year with tens of millions of dollars from the United States federal budget," the Cuban Foreign Ministry said Tuesday. "It will also remain ready to develop a relationship of respect with that country, based on dialogue and noninterference in the internal affairs of both, despite differences."
Pharmacy benefit managers "are raking in billions in excess revenue—$7.3 billion over just five years—while squeezing independent pharmacies and leaving patients and health plan sponsors with skyrocketing costs."
The U.S. Federal Trade Commission on Tuesday published the second part of its investigation into how prescription drug middlemen are marking up the prices of specialty generic drugs dispensed at their affiliated pharmacies by hundreds—and in some cases, thousands—of percent, underscoring what advocates say is the need for urgent action by policymakers.
The FTC's second interim staff report on consolidated pharmacy benefit managers (PBMs) found that the three largest of these middlemen—CVS Health's Caremark Rx, Cigna Group's Express Scripts, and UnitedHealth Group's OptumRx—"marked up two specialty generic cancer drugs by thousands of percent and then paid their affiliated pharmacies hundreds of millions of dollars of dispensing revenue in excess of estimated acquisition costs for each drug annually."
"Of the specialty generic drugs analyzed in this report and dispensed by the 'Big Three' PBMs' affiliated pharmacies for commercial health plan members between 2020 and 2022, 63% were reimbursed at rates marked up by more than 100% over their estimated acquisition cost... while 22% were marked up by more than 1,000%," the report states.
"For the pulmonary hypertension drug tadalafil (generic Adcirca), for example, pharmacies purchased the drug at an average of $27 in 2022, yet the Big Three PBMs marked up the drug by $2,079 and paid their affiliated pharmacies $2,106, on average, for a 30-day supply of the medication on commercial claims," the publication notes. That's a staggering average markup of 7,736%.
"The FTC's second interim report lays bare the blatant profiteering by PBM giants."
"Such significant markups allowed the Big Three PBMs and their affiliated specialty pharmacies to generate more than $7.3 billion in revenue from dispensing drugs in excess of the drugs' estimated acquisition costs from 2017-22," the FTC said. "The Big Three PBMs netted such significant revenues all while patient, employer, and other healthcare plan sponsor payments for drugs steadily increased annually."
The new analysis follows a July 2024 report that revealed Big Three PBM-affiliated pharmacies received 68% of the dispensing revenue generated by specialty drugs in 2023, a 14% increase from 2016.
"The FTC staff's second interim report finds that the three major pharmacy benefit managers hiked costs for a wide range of lifesaving drugs, including medications to treat heart disease and cancer," FTC Chair Lina Khan said in a statement Tuesday. "The FTC should keep using its tools to investigate practices that may inflate drug costs, squeeze independent pharmacies, and deprive Americans of affordable, accessible healthcare—and should act swiftly to stop any illegal conduct."
Khan's time as chair is limited. Republican U.S. President-elect Donald Trump's inauguration is next week and he has named Andrew Ferguson as the next FTC chair. As Ferguson is already on the commission, his elevation to chair won't require Senate confirmation.
Greg Lopes, spokesperson for the Pharmaceutical Care Management Association, a PBM lobby group, said Tuesday that "it's clear this report again fails to consider the entirety of the prescription drug supply chain and makes sweeping assertions about the role of PBMs disconnected from a full appreciation of their critical cost-saving role for employers, unions, taxpayers, and patients."
Last September, the FTC sued the Big Three and their affiliated group purchasing organizations for allegedly "engaging in anticompetitive and unfair rebating practices that have artificially inflated the list price of insulin drugs, impaired patients' access to lower list price products, and shifted the cost of high insulin list prices to vulnerable patients."
FTC Office of Policy Planning Director Hannah Garden-Monheit said Tuesday that the problem of PBM price inflation "is growing at an alarming rate, which means there is an urgent need for policymakers to address it."
To that end, U.S. Sens. Maria Cantwell (D-Wash.) and Chuck Grassley (R-Iowa) introduced the Pharmacy Benefit Manager Transparency Act of 2023, a bill backed by the AARP aimed at increasing transparency and "holding PBMs accountable for deceptive and unfair practices that drive up prescription drug costs and force independent pharmacies out of business."
"This report is a call to action for policymakers to dismantle these exploitative schemes."
Responding to the FTC report, Emma Freer, senior policy analyst for healthcare at the American Economic Liberties Project—a corporate accountability and antitrust advocacy group—said in a statement Tuesday that "the FTC's second interim report lays bare the blatant profiteering by PBM giants, which are marking up lifesaving drugs like cancer, HIV, and multiple sclerosis treatments by thousands of percent and forcing patients to pay the price."
"By steering prescriptions for the most expensive specialty generic drugs to their own pharmacies, PBMs are raking in billions in excess revenue—$7.3 billion over just five years—while squeezing independent pharmacies and leaving patients and health plan sponsors with skyrocketing costs," Freer added. "This report is a call to action for policymakers to dismantle these exploitative schemes, outlaw the rebate system driving up prices, and restore fairness and affordability to the U.S. healthcare system."