Attorney General Kwame Raoul of Illinois, alongside a coalition of 39 attorneys general, has formally requested Congress to enact legislation that would prohibit pharmacy benefit managers (PBMs) from owning or operating pharmacies. This appeal was conveyed through a letter directed at congressional leaders.
"PBMs have opted to focus on driving up their own profits at the expense of patients,” Raoul expressed. “Their control of an outsized share of the market has led to patients having fewer choices and paying higher costs. I join my fellow attorneys general in calling on Congress to reign in PBMs, and I will continue to advocate for reforms that ensure prescription pricing is transparent and reduce the financial burden on patients."
PBMs serve as third-party administrators over prescription drug programs for various health plans. Over recent decades, these entities have evolved dramatically, shifting from their initial role as service providers to dominant forces within the pharmaceutical industry. The attorney generals' letter emphasizes the need for congressional intervention to safeguard consumers from these industry's overwhelming influence.
The letter argues for legislation that would prevent PBMs and their parent companies from owning pharmacies. This push comes amidst concerns that the largest PBMs both operate affiliated pharmacies and form parts of conglomerates that additionally include insurance companies and health care clinics. Through these affiliations, PBMs wield considerable control over the competing independent pharmacies, often leading to contractual terms perceived as inequitable and harmful.
This bipartisan initiative cited Attorney General Raoul and his counterparts from Alaska, American Samoa, Arizona, Arkansas, California, Delaware, District of Columbia, Hawaii, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virgin Islands, Virginia, Washington, West Virginia, Wisconsin, and Wyoming as its participants.