April 3, 2023
Senate Finance Committee hearing on pharmacy benefit managers
On March 30, the Senate Finance Committee held a hearing, "Pharmacy Benefit Managers and the Prescription Drug Supply Chain: Impact on Patients and Taxpayers," which was notable for its display of bipartisanship with Committee leaders and members expressing aligned interests in examining the pharmacy benefit manager (PBM) market and promoting policies to increase transparency and address incentives for unfair market practices to lower costs for patients.
During the hearing, Committee members heard testimony from a panel of five witnesses, including academics, a startup PBM, and a lawyer who represents pharmacies, all of whom, except for one, spoke in favor of greater transparency among PBMs. The Senate Finance Committee is one of several congressional committees looking at the role PBMs play in drug prices. Most recently, the Senate Commerce Committee advanced the Pharmacy Benefit Manager Transparency Act (S. 127), which aims to increase transparency and prevent PBM practices that may increase costs, such as spread pricing. Leaders of the Senate HELP Committee have also expressed an interest in holding future hearings on the issue.
More information is available here.
Additional information is also available in the attached Tax Alert.
Hearing on pharmacy benefit managers