State Attorneys General Call on Congress to Rein in Pharmacy Benefit Managers
By Consumers for Quality Care, on March 13, 2024
A bipartisan letter from 39 state attorneys general calls on Congress to take “decisive action” to rein in pharmacy benefit managers (PBMs), Healthcare Dive reports.
The letter was sent from the National Association of Attorneys General (NAAG) to Congressional leaders, advocating for three bills that would reform PBMs and bring more transparency to consumers. Provisions in the bills would increase enforcement transparency, ban certain practices that lead to price manipulation, and require PBMs to disclose rebates that they receive as well as other types of compensation.
“Together, the legislation is intended to limit PBMs from unjustifiably increasing drug prices and to mandate steps that increase transparency of their practices,” the letter stated.
As Congress considers PBM legislation, the Federal Trade Commission (FTC) has launched its own investigations into the business practices of PBMs. The three largest PBMs – OptumRx, CVS Caremark, and Cigna’s Express Scripts – control 80 percent of drug prescriptions in the country, and advocates say that this high level of industry consolidation empowers PBMs to unjustifiably increase drug prices.
CQC urges lawmakers and regulators to continue scrutinizing PBM practices, especially those that reduce competition or increase the cost of prescription medications for consumers.
