Illinois House Holds Hearing on Pharmacy Benefit Managers
Pharmacy benefit managers (PBMs) were the main topic of discussion during a recent Illinois House hearing, as lawmakers and pharmacists raised concerns about the impact of PBMs on prescription drug prices and local pharmacies. PBMs hold significant influence in negotiating prescription drug access for many Americans, with Congress seeking increased transparency into their operations.
Pharmacists at the hearing testified that certain drug pricing practices by PBMs were hurting local pharmacies, as they were being forced to acquire drugs at high wholesale prices and dispense them with little to no profit. CEO Chad Worz of the American Society of Consultant Pharmacists warned that unless conditions change, more local pharmacies may be forced to close.
A recent study by the Federal Trade Commission (FTC) found that PBMs impose unfair and harmful contractual terms on independent pharmacies, impacting their ability to stay in business. The FTC requested documentation from major PBMs such as CVS Health’s Caremark, Cigna’s Express Scripts, and UnitedHealth’s Optum Rx.
Conner Rose of the Pharmaceutical Care Management Association (PCMA) defended PBMs, citing a previous FTC study that showed PBM ownership of mail-order pharmacies led to lower drug costs for consumers. However, Caremark, Express Scripts, and Optum Rx processed nearly 80% of the 6 billion prescriptions dispensed by U.S. pharmacies last year, according to the FTC.
The hearing highlighted the ongoing debate over PBMs’ role in the healthcare system and the need for greater oversight to ensure fair pricing practices and support for local pharmacies.
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