On February 20, 2024, the National Association of Attorneys General sent a letter to Congressional leaders urging them to act on bills currently being considered in various stages in the Congress. As part of the letter, the 39 Attorneys General (the “AGs”) discuss the “monopoly” and “monopsony” profits Pharmacy Benefit Managers (“PBMs”) are reaping as the result of their inflated market power. This is a promising development for independent pharmacies that have been seeking such regulation for years.
The AGs warn they are “very concerned about actions taken by PBMs that have unduly raised drug prices for consumers, and we are engaging on the issue on a number of fronts, including investigation, litigation, and advocating for legislative and policy reforms.” They also discuss the fact that many state legislatures have passed laws prohibiting some of the worst PBM abuses. However, as the AGs note, federal preemption of state laws (as discussed in our examination of the recent PCMA v. Mulready decision and our amicus brief in the PCMA v. Rutledge case) has made enforcement of these laws more difficult. Moreover, the AGs emphasize, “PBMs routinely try to evade state law and obstruct state regulatory efforts by refusing to disclose data to state regulators as well as their own clients (i.e., health plans operated by employers and the government).” Therefore, they call on the federal government to act.
The AGs state that “FTC and Congress must act to ensure fulsome regulation of PBMs nationwide.” As we have previously reported, the FTC is in the midst of an investigation of PBMs and associated entities, but more action is needed. Accordingly, the AGs have asked that Congress take up and debate proposed legislation including the DRUG Act, Protecting Patients Against Abuses Act, and the Lower Costs, More Transparency Act. Another bill recently passed by the Senate Finance Committee (“SFC”) is the Modernizing and Ensuring PBM Accountability Act, which was approved by the SFC after Jonathan Levitt testified last year before the SFC about PBM abuses. These and other bills are currently being considered by the Senate and House, and this large, bipartisan group of AGs urges them to act on these bills, for the good of independent pharmacies and patients nationwide.
How Frier Levitt Can Help
Frier Levitt’s attorneys have vast experience in fighting PBM abusive practices, as well as drafting and promoting legislation at both the state and federal levels. We are adept at leveraging state and federal laws to assist pharmacies with network access, DIR fees, and audits, and are available to discuss our services. Call Frier Levitt today to learn more.
