The U.S. House of Representatives is preparing a suspension vote on the Lower Costs, More Transparency Act, which includes many of the controversial, overreaching proposals impacting pharmacy benefits.
A recent Washington Examiner article highlighted growing concerns among Members of Congress and their staff with costly, Big Pharma-backed government mandates that allow Congress to interfere with private market contracting for pharmacy benefits:
“However, the proposals are not being met with approval from all in the House GOP, as some rank-and-file Republicans have expressed frustration with GOP leaders advancing legislation they say is largely influenced by Democrats…
“Some GOP aides have also expressed concerns that the bills are being supported and even funded by big pharmaceutical companies, with several conservatives arguing bills that target PBMs would only raise drug prices.
“House Republicans should not be doing the bidding of Big Pharma this period,” a senior House GOP aide said. “They need to focus on investigating Biden and cutting spending.”
“…Not a single Republican voter is asking the House to pass a PBM bill,” the staffer said. “This is driven by pharma lobbyists, it’s bad politics and policy, and it will hurt us next fall.”
In addition, U.S. Senator Rand Paul (R-KY) wrote an op-ed in The Barren Progress that also questions why Congress is focusing on PBMs. Sen. Paul writes:
“The truth is the left’s bill is being rammed through the Senate because some special interests want to weaken PBMs. Drug companies don’t like that PBMs have the size and bargaining power to cut into their profit margins, and they blame a complicated payment system PBMs use for why they won’t lower prices….
“Like so many misguided policies in Washington, this bill may actually raise drug prices. If that happens, just imagine the outcry for a single-payer health care system with government price controls. Maybe that’s exactly what the left is betting on—that if drug companies have free rein, the American people will get fed up fast, and demand a socialist paradise.”
Former U.S. Senator Pat Toomey (R-PA) in a recent op-ed warned Congress not to expand the government’s role in the health care system. Sen. Toomey explains:
“I’m here to tell Republican lawmakers: expanding the government’s role in our healthcare system could result in unintended consequences that are bad for patients…
“The proposals targeting PBMs aim to eliminate PBMs’ ability to earn a percentage of the savings they negotiate and/or force PBMs to disclose negotiated prices in business-to-business transactions. These measures would reduce PBMs’ capacity to generate savings in future negotiations… Voters elected a Republican House majority in 2022, which shows that many Americans still believe in limited government and private market solutions. Should Republicans repay voters by passing an expansion of government interference in healthcare that will result in higher prescription drug prices for their constituents?
“Republicans should focus on healthcare reforms that allow the free market to innovate, improve the quality of care, and drive down costs. We should be encouraging more competition, not allowing the government to dictate business models, price controls, and winners and losers in our healthcare system.”
Former U.S. Representative Ryan Costello (R-PA-06) also cautioned Congress, saying:
“To promote competition in the pharmaceutical industry, we need an approach that holds drug companies accountable. Without PBMs standing up to Big Pharma to lower prices on behalf of consumers, Big Pharma would be left with even more power and discretion to increase the price of drugs.
“This is exactly the opposite of the outcome all of us want — and it’s why legislation touting more ‘transparency’ for PBMs actually benefits Big Pharma and reduces the leverage used against Big Pharma to force them to lower prices.”
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Learn more about what health policy researchers Alex Brill and Casey Mulligan had to say on the costly implications of legislation, such as “delinking,” HERE.
See a recent op-ed from PCMA president and CEO JC Scott sharing how recent Congressional proposals would increase premiums HERE.
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PCMA is the national association representing America’s pharmacy benefit companies. Pharmacy benefit companies are working every day to secure savings, enable better health outcomes, and support access to quality prescription drug coverage for more than 275 million patients. Learn more at www.pcmanet.org
