Several senators in Washington D.C. are busy working on behalf of the American people to shine a light on and remedy some of the issues facing healthcare. Missouri’s elected federal leaders should join these efforts. As we all know, the cost of healthcare continues to rise and part of this rise is largely attributed to Pharmacy Benefit Managers (PBMs). PBMs are middlemen who set drug prices through negotiations and far too often, do not pass along any benefits to patients.
For years, PBMs have flown under the radar, but we at the Missouri Pharmacy Association have seen time and again how PBMs have exploited people. Finally, the federal government has made a stand and is working to shed light on PBMs’ anti-competitive practices.
S. 127, otherwise known as the Pharmacy Benefit Manager Transparency Act of 2023, is a bipartisan bill that has been introduced to increase transparency and reign in the exploitative conduct of PBMs. Currently, just three PBMs control 80% of the market, monopolizing the market space.
S. 127 would prevent the unjust practices of “spread pricing” and forcing unreasonable “clawbacks.” What is that you ask? First, spread pricing hurts Missourians as PBMs force us to pay excessive prices and disenfranchise us by forcing excess payments, pocketing the difference that they withhold. Second, clawbacks are contractual obligations that force pharmacies to reimburse PBMs, often excessively. Both are exploitative of payers and pharmacies, and S. 127 would eliminate these practices.
S. 127 would further benefit Americans by requiring the disclosure of all fees that PBMs incur from drug manufacturers, and the amounts they charge pharmacies, health plans, and payers. This transparency is a necessary check on the system, and one ignored for too long.
Pharmacies are often powerless against the PBMs, and without oversight and transparency, pharmacies will succumb to continued unfair practices and the cost of drugs will continue to skyrocket. That is why it is important to support S. 127. We must protect those fighting the PBMs’ practices and stand up for what is right.
Ultimately, S. 127 will ensure that all people are protected. We deserve to not be burdened with superfluous costs for the healthcare.
As not only Chief Executive Officer of the Missouri Pharmacy Association, but as a father, husband, and brother, I urge Missouri’s elected members of Congress to cosponsor and/or support S. 127 and fight to protect us from the exploitative practice of PBMs.
Chief Executive Officer of the Missouri Pharmacy Association.
