Momentum Building for Legislation that Separates PBM Income from the Price of Prescription Medicines
Washington, DC – The PBM Accountability Project today joined with patients, providers, pharmacists, labor, small business, and anti-monopoly advocates in sending a letter to Leaders of the House Energy and Commerce Committee and Members of the Health Subcommittee to reinforce strong support of ongoing, bipartisan efforts that would hold pharmacy benefit managers (PBMs) accountable and lower costs for seniors at the pharmacy counter.
“Members of Congress are reaching across party lines to take unprecedented action on an important issue facing older Americans who depend on Medicare: reining in PBMs that are responsible for driving up the out-of-pocket costs of medicines for millions of Americans,” said Mark Blum, managing director of the PBM Accountability Project. “Moreover, Americans’ tax dollars should not be diverted from Medicare benefits into outsized PBM profit margins.
“As Congress explores solutions to hold these middlemen health insurance corporations accountable, we believe that separating PBM income from the price of prescription drugs is an important step. The Protecting Patients Against PBM Abuses Act (H.R. 2880) would do just that by removing the perverse incentives that encourage PBMs to drive up drug prices,” Blum said.
The Act would eliminate PBM conflicts of interest by limiting PBM income to a single source: flat dollar fees paid for services valued by PBMs’ plan sponsor clients. This would ensure that PBM income is linked only to the value they provide to their clients, and, ultimately, the patients they are supposed to serve. In addition, H.R. 2880 provisions would prohibit discriminatory PBM reimbursement practices leveraged against pharmacies, ban spread pricing and strengthen PBM data transparency requirements.
Public polling has consistently shown widespread public support for PBM reform. A recent poll found that more than 80% of likely voters support delinking of PBM income from prescription drug prices. Similar majorities in both political parties agree that this issue should be one of Congress’ top priorities.
In the letter, organizations urge the House Committee on Energy and Commerce and the U.S. Congress to pass H.R. 2880 before the end of the year. To read the full letter, click here. To learn more about PBMs, visit pbmaccountability.org.
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