May 7, 2020

(Washington, D.C.) — The Pharmaceutical Care Management Association (PCMA) today issued the following statement applauding the Maryland legislature and Governor Larry Hogan for enacting first-of-its-kind legislation, HB 978/SB 915, to increase transparency in the prescription drug supply chain.

The legislation, sponsored by Delegate Ariana Kelly and Senator Benjamin Kramer, will give Maryland policymakers and the Maryland Insurance Administration the ability to better examine the relationship between Pharmacy Service Administrative Organizations, PSAOs, and independent pharmacies and the impact PSAOs have on the prescription drug supply chain. Maryland is the first state to create transparency measures into PSAOs.

“Now more than ever, it is critical for there to be transparency into prescription drug costs. Until now, there has been limited visibility into PSAOs,” said PCMA President and CEO JC Scott. “Transparency, amongst all parts of the drug supply chain, is important for increasing access to affordable prescription drugs for patients.”

Approximately 80% of independent pharmacies in the United States are represented by PSAOs in contract negotiations with third party payers like health plans and pharmacy benefit managers. PSAOs typically negotiate contract terms for independent pharmacies on reimbursement rates, payments, and audits.