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Foxx, Allen, Harshbarger Investigate Pharmacy Benefit Managers’ Role in Drug Costs

Today, House Education and Labor Committee Republican Leader Virginia Foxx (R-NC); Health, Employment, Labor, and Pensions Subcommittee Republican Leader Rick Allen (R-GA); and Representative Diana Harshbarger (R-TN) sent a letter to U.S. Comptroller General Gene L. Dodaro requesting the Government Accountability Office (GAO) perform a study on the role of pharmacy benefit managers (PBMs) in the pharmaceutical supply chain.
In the letter, the Members write: “Policymakers have raised concerns about the way PBMs are reimbursed for their services and the extent to which PBM practices decrease drug spending. For example, PBMs may be compensated by retaining a percentage of rebates, which may create an incentive for PBMs to favor higher rebates instead of lower list prices for drugs. … We are also aware of concerns about PBMs and their effect on competition.”
The Members conclude, asking GAO: “To what extent do PBMs provide pharmacy benefit management services to commercial health plans and how are they reimbursed for these services? What is known about the use and effect of PBM formularies and rebating arrangements on commercial drug spending for payers and beneficiaries? What role do ERISA fiduciary requirements have in the services PBMs provide to commercial plans?”
Read the full letter here.


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