WASHINGTON – At a hearing today, Sen. Chuck Grassley (R-Iowa), a senior member and former chairman of the Senate Finance Committee, outlined his work to lower health care costs for Iowans, including to bring more transparency and accountability to Pharmacy Benefit Managers (PBMs) whose shady tactics raise prescription drug costs.
Grassley noted that current health care discussions in Congress mirror talks in 2009, before Democrats rushed through the Affordable Care Act (ACA) on a partisan basis. Since the ACA was enacted, millions of Americans have been removed from their preferred health plan, and health insurance premiums skyrocketed.
In questions to American Action Forum President Douglas Holtz-Eakin, Grassley asked about ways Congress can promote greater health care price transparency and a competitive private insurance market.
On the need to lower health care costs:
Thanks first of all for the leadership of this committee for holding this hearing. It’s a topic that’s top of the minds of Iowans: high health care costs.
It’s kind of suffocated Americans for decades.
One example occurs at the pharmacy counter. I’ve heard from countless Iowans that high prescription drug prices frequently lead folks to having to choose between paying for their prescription [or] other necessities.
That’s why for years I’ve worked to bring transparency and accountability to tactics deployed by the Pharmacy Benefit Managers, or PBMs.
And, I’m not the only one in Congress doing it. In fact, the leadership of this committee is working on that as well.
PBMs play a significant role in the pharmaceutical drug supply chain. They act as middlemen processing prescriptions, negotiating prices [and] setting formularies.
My bipartisan legislation would increase transparency to better hold PBMs accountable. While not wholly within the committee’s jurisdiction for my legislation, I hope my colleagues will see the importance of acting on PBM reform as soon as possible.
High prescription drug prices are one of the several factors driving up health care costs. The rising cost of health care is also evident from escalating health insurance premiums and required copays.
There are many parallels between the conversations we’re having today and the ones that I had with my Senate colleagues back in 2009.
Unfortunately, my colleagues on the other side of the aisle rushed through Obamacare on a partisan basis. At the time, my Democrat colleagues claimed the law would bend the cost curve down.
It’s now evident that that was false, as was the promise that individuals could keep their health plan if they liked it.
Since the enactment of Obamacare, millions of Americans have been thrown off their preferred health plan, while health insurance premiums have skyrocketed.
According to the Paragon Institute, since 2014, Obamacare benchmark premiums have increased 129 percent for a 50-year-old enrollee. Obamacare premiums have increased twice as fast as premiums for employer provided coverage and three times faster than inflation.
That leaves us here today – revisiting the debate on ways to bend the health care cost curve.
We need to find a solution that will allow all Americans to breathe a little easier when they seek health care while also ensuring those with pre-existing conditions are protected.
On the need for price transparency and options:
So, Mr. Holtz-Eakin, I’ve been a proponent of shining light on health care costs, providing businesses the opportunity to help their employees get health insurance and allowing consumers the ability to shop for options.
You recently expressed concerns that some new mandates around drug pricing, surprise billing and transparency can add burdens which may erode “the comparative advantage of the private market.”
I’d like to have you elaborate on the factors Congress should consider as they seek to promote greater health care price transparency and a competitive private insurance market.
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