House Committee Examines Bills That Would Make Drug Pricing More Transparent
Today the House Energy and Commerce Committee's Health Subcommittee held a hearing on seven proposals that would require greater transparency for prescription drug prices. During the three hour hearing, Representatives examined seven bills that would require drug companies and pharmacy benefit managers (PBMs) to reveal information about how medicines are priced and why they cost so much. They also heard from several witnesses who offered feedback on the proposed bills. While
Minnesota Legislature Approves First Ever Bill Regulating Pharmacy Benefit Managers
Last week, the Minnesota Legislature approved its first ever bill regulating pharmacy benefit managers (PBMs) to ensure that they don't contribute to higher drug costs. A conference committee of members from both the Minnesota House and Senate met and hammered out a compromise between two bills. The bill now goes to Minnesota Governor Tim Walz, who is expected to sign it. The bill's chief sponsor, Republican State Senator Scott Jensen, said that "this shines a bright light on
GlaxoSmithKline is the Perfect Example of a Company Engaging in Anti-Competitive Behavior and Price
The behavior of drug manufacturers, especially when they use their power to stifle competition, is a major reason for why prescription drugs are so unaffordable. GlaxoSmithKline, a British multinational pharmaceutical company headquartered in London and worth $30 billion, is a perfect example of how drug companies engage in price gouging and anti-competitive behavior to increase drug costs. A new report by Patients for Affordable Drugs lays out how this corporation filed frau
Judge Picks Six Witnesses, Sets Hearing Date to Hear Criticisms of CVS-Aetna Merger
Judge Richard Leon of the United States District Court for the District of Columbia, who will decide whether CVS Health and Aetna can finalize their $70 billion merger, has picked six witnesses to testify at a hearing next month before he decides whether to approve the merger. The companies and experts had proposed thirteen possible witnesses. Judge Leon has been critical of the merger and stated that he wants to hear from critics of the acquisition before he makes a decision
FTC Commissioner Rohit Chopra Says Rebate Walls and PBMs Need to Be Looked At and Hurt Competition
Drug companies have become very adept at manipulating and regulations and gaming the system in order to preserve monopolies and increase drug costs. This has resulted in increasingly unaffordable medicines, and many Americans are now forced to ration their pills, choose between basic necessities and the drugs they need, or even cut their pills in half. One way that drug companies are increasing prices is the practice of rebate walls, where they "bundle" rebates for many diffe
New Bill Would Require the FTC to Investigate Competition in the PBM Market
As we have previously mentioned, the pharmacy benefit manager (PBM) market lacks the essential ingredients needed for a competitive market that lowers prices and benefits consumers. Senators have become increasingly concerned about the effect PBMs are having on drug prices, and the lack of competition. And a couple of weeks ago Senators Chuck Grassley (R-IA), Maria Cantwell (D-WA), and Steve Daines (R-MT) introduced the Prescription Pricing for the People Act of 2019, which w
Senate Judiciary Committee Examines Patent Abuse, Anticompetitive Behavior That Contributes to Risin
This morning the Senate Judiciary Committee held a hearing on intellectual property and rising prescription drug costs. During a two hour session, the Senators heard from several witnesses how drug companies abuse the patent system and manipulate regulations in order to prolong their monopolies and increase profits, and what can be done to solve the problem. The witnesses for this hearing were: Mr. Joshua Barker, Director of the South Carolina Department of Health and Human S
Consumer Groups Submit Letter to Senate Leaders in Support of the CREATES Act
A number of consumer groups submitted a letter in support of S. 340, the Creating and Restoring Equal Access to Samples (CREATES) Act. Introduced by Senator Patrick Leahy (D-VT), this bill would stop abusive delaying tactics that brand name companies use to prolong their monopoly profits and keep drug prices high. The letter was sent on behalf of Consumer Action, Consumer Federation of America, Consumer Reports, Families USA, NETWORK Lobby for Catholic Social Justice, and U.S
Ohio State Representatives Propose Stricter Oversight of PBMs and Medicaid
Over the past few years, Ohio legislators and executive officials investigated pharmacy benefit managers (PBMs) and found that they were greatly overcharging taxpayers and not lowering drug costs. Now representatives have come up with a proposal to stop this behavior. This week, Ohio House Republicans released a plan that will give the state government greater control of Medicaid's pharmacy benefits and ensure that private managed care companies and PBMs can no longer rip peo
States Are Taking Aggressive Steps To Lower Drug Prices By Regulating Drug Companies and PBMs
The House of Representatives and the Senate are both considering measures to lower prescription drug costs, and bills are working their way through various committees. Yet advocates should not lose sight of another important area-state governments. In 2019, states are taking more aggressive actions than ever before to reduce drug costs, by regulating both drug companies and pharmacy benefit managers (PBMs). Both of these actors have been pointing fingers at each other, attemp
