Montana Bill to Regulate PBMs and Lower Prescription Drug Costs Passes State Senate
Yesterday, the Montana State Senate approved SB 71, a bill that would regulate pharmacy benefit managers (PBMs) and lower prescription drug costs by requiring rebates to go to insurance companies and that those insurance companies use those rebates to lower drug prices. The bill is being sponsored by Republican State Senator Albert Olszewski at the request of Montana Insurance Commissioner Matt Rosendale. The Senate voted to approve it by 37 to 13, with several Democrats join
Senate Finance Committee Grills Drug Executives on Rising Prices, Criticizes Them For Terrible Pract
Yesterday, on February 26th, the Senate Finance Committee held a second hearing on rising prescription drug costs. During the three hour hearing, Senators attacked the drug company executives for their immoral and anticompetitive business practices, told moving stories of patients who could not afford medicines, and dismissed attempts to shift the blame. The witnesses at the hearing were the CEOs of seven of the world's most important and powerful pharmaceutical manufacturers
State AGs Must Protect Consumers and Fill The Void to Challenge PBM Misconduct
Last fall’s meeting between the Department of Justice and several State Attorneys General reminds us that sound antitrust enforcement is not just a federal affair. While the Department of Justice called the meeting to discuss the antitrust concerns regarding the consolidation of information and data on technology platforms, the State Attorneys Generals turned the focus of the meeting to consumer protection and data privacy issues. Although they did not see eye to eye on all
Ohio Attorney General Seeks $16 Million in Repayment From PBMs
Ohio Attorney General Dave Yost announced he is seeking the repayment of almost $16 million paid to the pharmacy benefit manager (PBM) OptumRx, after the company overcharged the state government for drugs. Yost said that he will take the PBM to nonbinding mediation, as required in its contract. If that mediation fails, then the case will probably go to court. In his letter to Optum, Attorney General Yost wrote that the PBM overcharged Ohio's Bureau of Workers' Compensation by
NAFTA 2.0 Provisions Would Harm Efforts to Promote Competition and Lower Drug Costs
President Trump's proposed replacement for the North American Free Trade Agreement (NAFTA) would give drug companies ten years' protection from cheaper competition for biologic drugs, a step that would harm efforts to promote drug competition and lower drug prices. Last year, the United States, Canada, and Mexico signed a free trade agreement to replace NAFTA, but the agreement does not go into effect until all three legislatures approve it. The pact gives drug companies a te
Department of Justice Responds to Consumer Comments on CVS and Aetna Merger, Dismisses Concerns
On Wednesday, the Department of Justice filed a response to objections to the merger of the health insurance company Aetna and CVS, the pharmacy benefit manager (PBM) and pharmacy retailer. Consumer advocates, doctors and hospitals, pharmacists, and others wrote to DOJ expressing concerns that the merger would harm competition and consumers. In their response, DOJ dismissed these concerns, stated that CVS's acquisition of Aetna will benefit consumers, and implied that many co
House Ways and Means Committee Examines Measures to Lower Drug Costs
Yesterday, on February 12th, the House Ways and Means Committee held its first hearing on the rising costs of prescription drug prices and how to reduce them. During a lively three and a half hour meeting, representatives asked tough questions about pharmaceutical companies, pharmacy benefit managers (PBMs), and patent abuse, and said they were determined to enact a sweeping agenda to lower drug prices. The witnesses were Odunola Ojewumi (a patient from Maryland), Mark Miller
Optum Rx Makes Demand Before Companies Lower Drug List Prices
Optum Rx, one of America's largest pharmacy benefit managers (PBMs) sent a letter to drug companies outlining several demands the companies must meet if they seek to lower list prices for their medicines. This would put another obstacles in the path of lowering drug prices. The letter was sent to several drug manufacturers. In it, Optum demanded a couple of things: 1) at least seven quarters notice before a company reduces its list prices, and 2) equivalent rebates off of low
Antitrust Law and the CVS and Aetna Merger
Recently a bunch of books and articles have focused on antitrust law and the decades long trend of mergers and acquisitions. As a result, many American industries are now consolidated into a handful of dominant companies. The results? Reduced competition, less innovation and entrepreneurship, increased harm to consumers, higher prices, lower quality of products and services, and rising income inequality. In order to fix this, Congress should strengthen antitrust laws, and Hou
Ohio Governor Orders Crackdown on PBMs
Ohio Governor Mike DeWine, frustrated with the behavior of pharmacy benefit managers (PBMs) and the fees they have extracted from Ohio taxpayers, has ordered a crackdown on PBMs, and ordered state agencies to prepare for a possible lawsuit against them. He has directed Ohio's Medicaid Director Maureen Corcoran to provide any pertinent data to Ohio Attorney General Dave Yost for a potential lawsuit against PBMs. In remarks on Friday, February 1st, he said, "It's pretty simple.
