COLUMBUS, Ohio — Attorney General Dave Yost of Ohio is spearheading a bipartisan coalition consisting of 39 attorneys general, urging both the U.S. Senate and House of Representatives to undertake meaningful discussions and reforms regarding the practices of pharmacy benefit managers (PBMs).
In a bipartisan letter led by Yost along with the Attorneys General of North Carolina, Pennsylvania, and Arkansas, the group emphasizes the necessity for Congress to enact reforms to increase transparency and address concerns surrounding the operations of PBMs.
Yost expressed concern over the current state of PBMs, stating, “PBMs were originally intended to reduce the financial burden on Americans for prescription drugs, the reality today is starkly different.” He highlighted the shift in focus from patient interests to profit maximization, which has marginalized local pharmacies and impacted consumers.
The letter stresses the urgent need for legislative action and highlights three key bills – the DRUG Act (S1542/HR6283), Protecting Patients Against PBM Abuses Act (HR2880), and the Lower Costs, More Transparency Act (HR5378) – as vital pieces of legislation offering necessary reforms.
These bills aim to restrict PBMs from unjustifiably increasing drug prices and mandate greater transparency in their operations, including the provision of pricing data to health plans and regulators in a standardized format. These measures are designed to empower health plans in negotiations with PBMs and enhance regulatory oversight to hold PBMs accountable.
The coalition of attorneys general is committed to advocating for reforms that prioritize patient needs over profit-driven motives within the PBM industry.
PBMs act as intermediaries between insurance providers and pharmaceutical manufacturers, negotiating discounts and rebates to reduce prescription medication costs for clients. However, Yost argues that PBMs’ leverage in deciding which drugs to cover leads to inflated list prices, as drug manufacturers raise prices to accommodate growing rebates demanded by PBMs.