Ohio’s businesses are the cornerstone of our state’s economy, and as someone who believes in keeping government out of the way so that businesses can grow, I’m alarmed by the new push from Big Pharma and the Left to take critical choices away from employers when it comes to designing health care benefits for their employees and families.
It seems that certain lawmakers are listening to Big Pharma and their intense lobbying efforts to boost their own profits and target free market forces by misguidedly attacking pharmacy benefit managers (PBMs). PBMs are vital for driving health care costs down and helping employers offer affordable benefits to their employees.
This is especially true for small businesses like mine. But recent proposals in Congress would strip PBMs of their incentives to successfully negotiate, ultimately driving up drug costs, burdening Ohio’s businesses and punishing American seniors.
The attack on PBMs isn’t just misguided—it’s bad economics. PBMs help keep drug prices in check by negotiating with pharmaceutical companies, ensuring fair costs and protecting businesses from being squeezed by rising health care costs. Without them, many employers would be forced to scale back benefits or face skyrocketing costs, which would threaten jobs and reduce competitiveness.
Yet, Big Pharma and left-wing allies, like Mark Cuban who owns his own drug distribution company that is in direct competition with PBMs, are calling on lawmakers to target PBMs all to serve their own special interests.
Big Pharma is pushing Congress to “delink” PBM compensation from their performance. This move would strip away PBMs’ incentive to secure lower drug prices, lining Big Pharma’s pockets while removing a key safeguard for businesses and consumers. If Congress passes this bill, it will hand Big Pharma a nearly $11 billion financial windfall, according to University of Chicago Economics Professor Casey Mulligan, Ph.D. while saddling seniors with $13 billion in premium hikes. That’s a direct hit to retirees and an unconscionable gift to Big Pharma.
For Republicans in Congress, supporting this anti-PBM policy is nothing short of doing Big Pharma and the Left’s bidding. In a few short months, we will have Trump administration back in office and the last thing we want is for them to inherit disastrous policies that make health care more expensive for both businesses and seniors. The Medicare “delinking” proposal would only leave an incoming Republican administration to clean up the mess: dealing with higher premiums and more power in the hands of drug companies, not to mention a bigger financial burden on American taxpayers.
Ohioans want a strong, vibrant economy built by local businesses that can grow and provide competitive benefits to their workforce. PBMs help make that possible by keeping our health care costs manageable. If left alone, they would continue to play a crucial role in stabilizing drug prices through free-market competition. Taking this option off the table by forcing PBMs into a weaker position would eliminate a vital partner that businesses and seniors rely on to stay afloat.
With the Trump Administration returning soon, Congress should hold the line and avoid ramming through misguided health care policies during the end-of-year frenzy. Republicans need to stand firm against Big Pharma’s anti-PBM agenda and resist any backdoor attempt to impose it on the American people. Protecting PBMs from destructive “delinking” mandates is about safeguarding affordable health care for seniors, securing free-market solutions and ensuring that Ohio’s businesses can thrive without unnecessary government intervention.
Ohio’s employers and seniors deserve better than a government handout to Big Pharma that would compromise affordability and undermine our health care system. It’s time for Congress to push back and keep these harmful mandates off the table—for the good of businesses, families and America’s future.
Steve Sydow is the owner of SJS Electric in Ironton, OH and a member of the Ironton Chamber of Commerce and Lawrence County GOP.
