Attorney General Josh Kaul, along with a bipartisan coalition of 39 attorneys general, is urging the U.S. Senate and House of Representatives to reform the practices of pharmacy benefit managers (PBMs). Kaul emphasized the importance of holding down prescription drug prices and increasing transparency in pricing, stating, “The cost that Wisconsinites pay for prescription drugs shouldn’t increase because of pharmacy benefit managers.”
The coalition highlights three crucial bills for reform within the PBM industry: the DRUG Act (S1542/HR6283), Protecting Patients Against PBM Abuses Act (HR2880), and the Lower Costs, More Transparency Act (HR5378). These bills aim to limit PBMs from unjustifiably increasing drug prices and mandate more transparency in their practices, empowering health plans to negotiate better agreements and enabling regulators to hold PBMs accountable.
PBMs act as intermediaries between insurance providers and pharmaceutical manufacturers, negotiating discounts and rebates to reduce the cost of prescription medication. However, their ability to influence which drugs are covered can lead to higher list prices as drug manufacturers provide increasing rebates to be included in their formularies.
The attorneys general are advocating for reforms that prioritize patient needs over profit-driven motives in the PBM industry. The coalition includes representatives from a wide range of states, showing a united front in the call for congressional action on PBM reform.