Illustration: Shoshana Gordon/Axios
A bipartisan group of lawmakers today unveiled legislation to split up PBMs and pharmacies, a sign of continued scrutiny of the drug supply intermediaries.
Why it matters: The measure shows the breadth of frustration with PBM business practices, with Sens. Elizabeth Warren and Josh Hawley joining forces.
- Reps. Jake Auchincloss and Diana Harshbarger are leading the House version.
What's inside: The bill would prohibit the parent company of a PBM or insurer from owning pharmacies.
- Corporations with both would have to divest the pharmacies within three years of enactment.
The measure targets consolidation in health care that critics say has driven up drug prices, limited patient choices and, in some cases, driven independent pharmacies out of business.
- Backers argue that PBMs use anticompetitive tactics that disadvantage independent pharmacies, steering business to their own affiliates.
What they're saying: "PBMs have manipulated the market to enrich themselves — hiking up drug costs, cheating employers, and driving small pharmacies out of business," Warren said. "My new bipartisan bill will untangle these conflicts of interest by reining in these middlemen."
The other side: Greg Lopes, a spokesperson for the PBM trade group PCMA, said that "PBMs exist to serve patients by enabling employers and others to offer benefits."
- Members of Congress should "be thoughtful" before "they take away consumers' ability to access their medicines how and where they'd like," he added.
