WASHINGTON, D.C. – Last week, the Pharmacy Benefit Manager Transparency Act, legislation U.S. Senator Shelley Moore Capito (R-W.Va.) co-sponsored, passed the Senate Commerce, Science, and Transportation Committee. Following the committee’s approval, the legislation can now be considered by the full Senate.
“My work over the past several years on the impact PBMs are having on pharmacies in so many of our communities opened my eyes to the role these industry middlemen play in rising prescription drug prices,” Senator Capito said. “It is essential we bring additional transparency to this industry and prevent deceptive or unfair practices which lead to higher drug prices for consumers and pharmacies closing their doors. The Pharmacy Benefit Manager Transparency Act will assist in this effort, and I’m glad to see it move closer to becoming law.”
BACKGROUND:
The Pharmacy Benefit Manager Transparency Act specifically aims to ban deceptive unfair pricing schemes, prohibit arbitrary claw backs of payments made to pharmacies, and require Pharmacy Benefit Managers (PBMs) to report to the Federal Trade Commission (FTC) how much money they make through spread pricing and pharmacy fees.
During her time in the Senate, Senator Capito has repeatedly acted to protect consumers and small businesses by holding PBMs accountable. In addition to the Pharmacy Benefit Manager Transparency Act, Senator Capito also joined in the reintroduction of the Prescription Pricing for the People Act, and has previously sponsored legislation and led a number of letters to the current and previous administrations.
Full text of legislation is available here.
A summary of the bill is available here.
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