Attorney General Keith Ellison has joined a bipartisan coalition of 39 attorneys general to request that Congress prohibit pharmacy benefit managers (PBMs) from owning or operating pharmacies. In a letter to congressional leaders, Ellison emphasized his commitment to making drug costs more affordable for Minnesotans. "My mission is to help Minnesotans afford their lives, which is why I am taking on pharmacy benefit managers once again," said Ellison. He accused PBMs of increasing drug costs instead of passing on the savings from rebates and discounts to consumers.
Ellison noted that PBMs, initially intended to lower drug costs, are now seen as dominant forces within the pharmaceutical sector due to consolidation and integration. They control much of the market and operate affiliated pharmacies. The top six PBMs possess their own pharmacies and are part of conglomerates that include insurance firms and healthcare clinics. Such power, Ellison argues, threatens independent pharmacies, particularly in rural areas, where pharmacy options are limited. "The last thing we need is for these greedy middlemen to acquire more power to drive up prices on the drugs Minnesotans depend on," Ellison stated.
The coalition believes congressional action is necessary to reestablish a fair market, protect consumers, and ensure small businesses can thrive. The aim is to prohibit PBMs from owning or running pharmacies to enhance consumer protection.
Ellison's efforts to regulate PBMs have included previous actions. In July 2021, he led a coalition defending a North Dakota law regulating PBMs. Another action followed in June 2024 when he supported an Oklahoma law with similar aims. His 2019-2020 Advisory Task Force pointed out that conflicts of interest within PBM business models contribute significantly to high drug costs. The task force's report from February 2020 recommended extensive regulation of PBMs and their practices.
The letter to Congress from the attorneys general was led by Tim Griffin of Arkansas, Andrea Joy Campbell of Massachusetts, Andrew Bailey of Missouri, and Charity R. Clark of Vermont. In addition to Ellison, attorneys general from states like Alaska, California, New York, and others have endorsed the proposal.