Opening Remarks by Senator Chuck Grassley of Iowa

Senate Finance Committee

Open Executive Session to Consider the Modernizing and Ensuring PBM Accountability (MEPA) Act

 Wednesday, July 26, 2023

VIDEO

Mr. Chairman and Ranking Member, thank you for holding this PBM markup.

PBMs play a central role in the high cost of prescription drugs. 

Five years ago, the only person who might know what a PBM does would be your local pharmacist.

I’m glad that we’ve been able to help educate the American people on what a PBM is and how they can negatively impact a patients’ bottom line.

We’ve done this through efforts the Chairman and I started in 2018 to get the FTC involved in studying PBMs. And, secondly, in our bipartisan two-year bipartisan insulin that showed price-gouging by PBMs and drug companies.

In reviewing the Chairman’s mark, three provisions are similar to policies we advanced in this Committee three years ago in the drug pricing markup I chaired.

I hope today’s markup shows we’re taking aggressive action on PBM accountability.

If we’re timid, we’ll be right back here a few years from now fixing the problem we thought we fixed at this point.

One amendment I’ve filed that doesn’t meet the Chairman’s germaneness standard is to allow pharmacy provider status under Part B.

This bill would positively impact seniors’ access to medication and local health care services.

I hope this committee will consider the bill, Pharmacy & Medically Underserved Areas Enhancement, in future Medicare conversations.

I remain committed to my two PBM bills I’ve worked with Senator Cantwell on that have advanced out of their respective committees.

While not in this Committee’s jurisdiction, they complement our efforts here today.

I hope the Senate doesn’t miss the opportunity to hold the FTC accountable in requiring the 6(b) study of drug middlemen to be produced within 1 year instead of 3 to 5.

Also, the FTC can play an important role of holding PBMs accountable across all health insurance on spread pricing and clawbacks.

Finally, I appreciate the Chairman and Ranking Member for including two of my amendments in the modified mark: the pharmacy & therapeutic committee conflicts of interest standards on PBMs; and secondly, the PBM administrative fees transparency enhancements under Section 1150A.

Thank you.