Attorney General Jason Miyares of Virginia, along with 38 other attorneys general, has called on Congress to prohibit pharmacy benefit managers (PBMs) from owning or operating pharmacies. This appeal aims to address the issues arising from PBMs acting as market leaders within the prescription drug program industry, a result of significant industry consolidation over recent decades.
PBMs, which are third-party administrators of prescription drug programs, have expanded beyond their original administrative role. The leading PBMs now operate their own pharmacies and are linked with conglomerates that handle insurance and healthcare services. This integration allows PBMs to influence the market unfairly, placing independent pharmacies at a disadvantage by imposing restrictive contractual conditions.
The regulatory oversight of PBMs has been limited, prompting states like Virginia to implement consumer protection measures. Despite these efforts, state governments face challenges from the powerful PBM industry. The call to Congress follows a previous request made in 2024 by the attorneys general for federal action on this issue.
The letter from the attorneys general insists on federal legislation that would prevent PBMs or their parent companies from owning pharmacies. This collective step aims to protect the interests of both consumers and independent pharmacies.
Signatories to the letter include attorneys general from various states and territories, namely Alaska, American Samoa, Arizona, Arkansas, California, Delaware, District of Columbia, Hawaii, Illinois, 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, Washington, West Virginia, Wisconsin, and Wyoming.