Take Action: Reduce Drug Prices
Action: Require PBM Transparency and Accountability to Reduce Drug Prices
Pharmacy benefit managers (PBMs) for far too long have been manipulating the drug pricing system and overcharging small businesses, local pharmacies, patients, and the government.
As employers’ health care costs increase year after year, obscure middlemen known as pharmacy benefit managers (PBMs) line their own pockets by exploiting America’s opaque and anti-competitive prescription drug distribution system. In healthy, truly competitive markets, buyers and sellers can assess the value of a good or service and once armed with transparent pricing information, they can work to find common ground between access and affordability. However, PBMs routinely prevent these essential market functions from yielding the needed savings and efficiencies that can and should accrue to plan sponsors and patients.
Today, three corporations control more than 80% of the U.S. market share, creating an oligopoly and virtually eliminating a competitive environment.
Worse, the industry has become vertically integrated so the PBMs have major health insurers and affiliated pharmacies within their corporate sphere. Thus, these mega-corporations, the top three of which are in the Fortune 15, have enormous power to determine drug price and availability with minimal regulatory oversight.
Price gouging is a reality. One recent study found that PBMs are charging Florida Medicaid nearly $5,000 per prescription for a generic multiple sclerosis drug, more than $4,600 over the manufacturer’s $350 price.
The result: Higher prices, abuse of taxpayer dollars and fewer choices for the sick. The lack of PBM transparency and accompanying abuse ensures that multi-billion- dollar PBM corporations always have the final word, particularly with consumers and small businesses.
The American Free Enterprise Chamber of Commerce needs your help to put pressure on your elected officials to give consumers lower prices and more choices through free enterprise.
Here is how you can help:
Contact your elected officials and let them know you want Congress and the White House to bring competition back to drug pricing by reforming or eliminating PBMs.
Contact President Joe Biden online, or call the White House switchboard at 202-456-1414 or the comments line at 202-456-1111 during business hours.
If you have seen your company's or individual drug prices go up or do not have access to medications, please tell us your story. We want to share these stories with members of Congress and the media. We will not share your information without your express consent and permission.