PBM reform legislation backed by consumer groups

WASHINGTON In a joint letter to House Speaker Nancy Pelosi, three consumer groups are backing transparency requirements for pharmacy benefit managers in healthcare reform.

The Consumer Federation of America, U.S. Public Interest Research Group and the National Legislative Association on Prescription Drug Prices sent a joint letter to Pelosi supporting the provision, authored by Rep. Anthony Weiner, D-N.Y., and included in the House Energy and Commerce Committee’s America’s Affordable Health Choices Act of 2009.

“The need for PBM reform legislation is straightforward and compelling. PBMs represent the most rapidly growing segment of healthcare spending, and yet they are the only part of the healthcare market that is still unregulated.  Because of the lack of regulation PBMs engage in fraudulent and deceptive practices, resulting in several enforcement actions by a coalition of state attorneys generals that have secured over $371 million in fines and penalties. At the same time the profits of the three major PBMs has skyrocketed to almost $3 billion annually,” the letter states.

In response to the letter, Bruce Roberts, National Community Pharmacy Association EVP and CEO issued at statement that read:

“The momentum is growing to finally force PBMs to play by the same set of rules as everyone else. For too long these administrators of prescription drug plans have operated in secrecy. That’s especially true in the case of payments they command from drug manufacturers in exchange for promoting one product over another. And any discounts PBMs do negotiate are hidden and withheld from health plan sponsors (governments, employers, etc.), patients and pharmacies. Thanks to Congressman Weiner there is legislative language in the healthcare reform bill to essentially open the PBM books and bring transparency into the process. NCPA strongly supports this provision.”

A full copy of the letter can be accessed at http://www.reducedrugprices.org/read.asp?news=4143.