Attorney General Charity Clark, joined by Arkansas Attorney General Tim Griffin, Massachusetts Attorney General Andrea Joy Campbell, and Missouri Attorney General Andrew Bailey, leads a group of 39 state and territory attorneys general calling for Congress to prohibit pharmacy benefit managers (PBMs) from owning or operating pharmacies.
"The high cost of prescription drugs in this country is unacceptable, and PBMs are part of the problem," Clark stated. "When PBMs operate pharmacies, they obscure the true cost of prescription drugs, squeeze out independent pharmacies, reduce competition, and narrow consumer choice. To protect consumers, I’m calling on Congress to prohibit pharmacy benefit managers from owning and operating pharmacies."
PBMs act as third-party administrators of prescription drug programs for health plans. Over the past few decades, changes have allowed these entities to grow into major market players, controlling large portions of the industry. The top six PBMs, which include CVS and Evernorth, both operating heavily in Vermont, have been implicated in forming pharmacy affiliations. Five of these top six are also part of large conglomerates running insurance companies and healthcare clinics. This creates a market where PBMs contract with competitors and influence terms that may be detrimental to independent pharmacies. Vermont, for example, saw a reduction from 35 independent pharmacies in 2013 to just 14 today.
Attorney General Clark filed a lawsuit last year against PBMs Evernorth and CVS, alleging they increased prescription drug costs in Vermont through market manipulation, violating Vermont's Consumer Protection Act. The case claims these companies have used non-transparent strategies to limit access to certain drugs, especially lower-cost options.
The letter from the coalition urges Congress to enact legislation that would prevent PBMs or their parent companies from owning pharmacies, a move they believe would protect consumers.
The signatories of the letter alongside Attorney General Clark include the attorneys general of numerous states and territories, such as Alaska, American Samoa, Arizona, and others, totaling 39 collaborators.