Earlier this year, Senators Marsha Blackburn of Tennessee and Mike Braun of Indiana introduced a bill entitled “Pharmacy Benefit Manager Accountability Study Act of 2021.” If enacted, this legislation would require the Comptroller General to conduct a study of PBM conduct focusing upon:
- The PBMs’ role in the drug supply chain;
- The state of competition among PBMs;
- The use of rebates and fees by PBMs, including the amount of the rebate that is passed on to the payer and/or patient;
- The structure of formularies;
- Prior authorization approval times for PBMs;
- Factors affecting the use of step therapy by PBMs; and
- The use of spread pricing by PBMs.
According to Blackburn, “[t]he lack of transparency on the part of PBMs has revealed a broken market and hurts patients, independent pharmacists and taxpayers. This legislation will begin to reverse that trend.” We agree with Senator Blackburn and believe that this legislation is a step in the right direction. Frier Levitt has been discussing many of these issues for years, including Antitrust, Rebates, Prior Authorization, Formularies, and Spread Pricing, and is at the forefront of legal battles on behalf of independent pharmacies to curb the abuses of PBMs with respect to these practices.
The legislation, if enacted, would provide an important step towards derailing PBM practices like these that often increase out-of-pocket expenses for patients and, in some cases, place patients in significant danger. We encourage pharmacies and patients to contact their Senators and encourage them to support this important legislation.
How Frier Levitt Can Help
To learn more about what your pharmacy may do to prevent or combat predatory PBM practices, call Frier Levitt today to speak with one of our attorneys. We can help.
