Washington, D.C. — U.S. Senator Michael Bennet (D-Colo.), a member of the U.S. Senate Finance Committee, joined Senate Finance Committee Chair Mike Crapo (R-Idaho) and Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) to introduce the Pharmacy Benefit Manager (PBM) Price Transparency and Accountability Act. This legislation will fix market distortions and increase transparency in federal prescription drug programs to lower patient costs at the pharmacy counter.
“We live in the wealthiest country in the world, yet lifesaving medicine is still unaffordable for far too many Americans. This bill is an important step toward increasing accountability and transparency in drug pricing and making prescriptions more affordable for Coloradans,” said Bennet.
“Pharmacy benefit managers should not profit from overcharging patients for their prescriptions,” said Crapo. “This bipartisan legislation is a decisive step toward making the prescription drug market easier to navigate for both patients and pharmacies. These proposals form a strong foundation for additional efforts to promote pharmacy access, demystify drug pricing and reduce costs for both taxpayers and seniors.”
“It’s long past time to go after middlemen who are making Americans’ prescription drugs more expensive,” said Wyden. “The Finance Committee has put forward a comprehensive approach to stop the pharmacy benefit manager business practices that are harming seniors and taxpayers who count on Medicare to deliver affordable prescription drugs. It’s time to get this done.”
Specifically, the PBM Price Transparency and Accountability Act would:
- Delink PBM compensation from their negotiated rebates to disincentivize PBMs from promoting higher-priced medications;
- Increase PBM reporting requirements to Medicare Part D plan sponsors and to the U.S. Department of Health and Human Services and empower Part D plan sponsors to audit their PBM for compliance with contract requirements;
- Reinforce existing requirements that plan sponsors contract with any willing pharmacy that meets their standard contract terms and conditions to better protect independent pharmacies in rural areas from practices that have contributed to widespread closures;
- Require participation by retail community pharmacies in the National Average Drug Acquisition Cost survey, which would ensure accurate Medicaid payments to pharmacies; and
- Mandate that PBMs pass Medicaid payments directly to pharmacies to ensure transparent drug costs for states and taxpayers.
In addition to Senators Bennet, Crapo, and Wyden, U.S. Senators John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Catherine Cortez Masto (D-Nev.), Bill Cassidy (R-La.), Maggie Hassan (D-N.H.), John Cornyn (R-Texas), Ben Ray Luján (D-N,M.), Steve Daines (R-Mont.), Tina Smith (D-Minn.), Chuck Grassley (R-Iowa), Mark Warner (D-Va.), James Lankford (R-Okla.), Raphael Warnock (D-Ga.), Roger Marshall (R-Kan.), Peter Welch (D-Vt.), John Thune (R-S.D.), Sheldon Whitehouse (D-R.I.), and Thom Tillis (R-N.C.) cosponsored the bill.
The text of the bill is available HERE.
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