COLUMBUS, Ohio – Ohio Attorney General Dave Yost is spearheading a coalition of 39 attorneys general urging Congress to address concerns surrounding the practices of pharmacy benefit managers (PBMs).
The bipartisan effort, outlined in a letter sent to both the Senate and House of Representatives, calls for meaningful reform to ensure PBMs prioritize patient needs and operate with greater transparency.
“PBMs were intended to lower prescription drug costs for Americans, but the reality has diverged significantly,” said Yost. “Instead of serving patients, PBMs seem more focused on maximizing profits, often at the expense of local pharmacies.”
The letter highlights potential abuses within the PBM industry and emphasizes the need for legislative action. The coalition specifically identifies three bills – the DRUG Act, Protecting Patients Against PBM Abuses Act, and Lower Costs, More Transparency Act – as crucial pieces of legislation offering necessary reforms.
These proposed reforms aim to:
Curb unjustified drug price increases by PBMs.
Increase transparency by requiring PBMs to provide standardized pricing data to health plans and regulators.
These measures, according to the attorneys general, would empower health plans to negotiate better deals with PBMs and enable regulators to hold them accountable.
The coalition’s ultimate goal is to advocate for reforms that prioritize patient well-being and ensure the PBM industry operates with transparency and fairness.
Background on PBMs:
PBMs act as intermediaries between insurers, pharmaceutical companies, and pharmacies. They negotiate drug prices, manage pharmacy networks, and develop drug formularies, which are lists of covered medications.
Critics argue that PBMs leverage their power to extract excessive rebates from drug manufacturers, ultimately leading to higher list prices for consumers. Additionally, concerns exist regarding unfair practices impacting independent pharmacies.
This bipartisan push by attorneys general signifies a growing national movement advocating for PBM reform and aiming to ensure a more patient-centric and transparent healthcare system.
