A bipartisan group of lawmakers announced Wednesday that it aims to reduce drug costs by banning joint ownership of pharmacies with pharmacy and benefit managers (PBMs).
of invoiceThe bill, called the Exclusive Pre-Patient Act, is sponsored by Democratic Massachusetts Sen. Elizabeth Warren and Republican Missouri Sen. Josh Hawley. Warren said PBMs negotiate drug prices between pharmacies, insurance companies and drug companies.
“PBMs have manipulated markets to enrich us by raising drug prices, defrauding employers, and forcing small pharmacies out of business,” Warren said. “My new bipartisan bill would untangle conflicts of interest by reining in these middlemen.”
“Insurance monopolies are ruining American health care,” Hawley said.
“Patients and independent pharmacies are paying the price. This legislation will stop insurance companies and PBMs from further gouging away at America's health insurance and charging American families more and more lower prices.” Hawley he said.
LONDON, UNITED KINGDOM – SEPTEMBER 19: Boxes of medication are seen on the shelves of KeenCare Pharmacy, a member of the Green Light Group, on September 19, 2024 in London, England. (Photo by Leon Neal/Getty Images)
Supporters say the bill would address drug pricing issues by prohibiting PBM parent companies and insurance companies from owning pharmacy operations and requiring parent companies that violate PBM laws to sell their pharmacy operations within three years. It claims that it does. This would allow various departments to issue orders to violators of PBM laws to sell their pharmacy businesses and disgorge any proceeds received during the period of violation. Several organizations have expressed support for this bill. These include the American Economy Liberties Project, National Community Pharmacists Association, American Pharmacy Cooperative Inc., Pharmacists United for Truth and Transparency, Patients Rising, and AffirmedRx. (Related: Here's how a few fishermen wreak havoc on the administrative state)
“Large PBMs and insurance companies owning their own pharmacies is driving independent pharmacies out of business and reducing patient access to quality care. By eliminating the conflicts of interest inherent within the PBM business model, it addresses the root cause of this problem: the consolidation of market power,” said Morgan Harper, director of policy and advocacy at the American Economic Liberties Project. says. statement.
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