“The Prescription Pricing for the People Act of 2019 would shed light on how PBMs are affecting prescription costs and patient choice. This would support Congress as it crafts evidence-based solutions to address the anticompetitive role PBMs play as pharmaceutical costs continue to rise.”
WASHINGTON — Reps. Doug Collins (R-Ga.), Ranking Member of the House Judiciary Committee, and Jerrold Nadler (D-N.Y.), Chairman of the House Judiciary Committee, today introduced the Prescription Pricing for the People Act of 2019. The legislation requires the Federal Trade Commission (FTC) to study pharmacy benefits managers (PBMs) and how their actions are affecting patients and local pharmacies.
“PBMs have an important role to play in America’s health care system, but too often they operate in the shadows, manipulating drug prices, steering patients and engaging in other anticompetitive behaviors that increase costs and force out community pharmacies,” said Collins. “The Prescription Pricing for the People Act of 2019 would shed light on how PBMs are affecting prescription costs and patient choice. This would support Congress as it crafts evidence-based solutions to address the anticompetitive role PBMs play as pharmaceutical costs continue to rise. I’m grateful for Chairman Nadler’s leadership as we partner to bring needed transparency to the drug pricing landscape.”
“Currently, some firms are able to raise their rivals’ costs or steer business to their own pharmacies and away from competitors. The study required by Prescription Pricing for People Act of 2019 will provide helpful guidance to Congress as it considers ways to stop this behavior and lower drug prices,” said Nadler. “I’m proud to cosponsor this legislation and I commend Ranking Member Collins for his leadership, and for his commitment to promoting greater competition in the drug supply chain. I look forward to quickly moving this bill out of the Committee and to the House floor.”
PBMs negotiate medication pricing with payers, pharmaceutical companies and pharmacies. PBMs claim these negotiations reduce consumer costs. However, prescription costs have risen. In addition, PBMs often manipulate patient formularies to create financial incentives to force patients to use higher cost drugs and pharmacies — namely, pharmacies that are owned by the same company as the PBM.
The Prescription Pricing for the People Act of 2019 would require the FTC to study PBM’s anticompetitive behavior and its effects on patients’ prescription choices and cost. This legislation would bring needed transparency in the pharmaceutical space and position Congress address anticompetitive behavior.