Grassley: Support The Pharmacy Benefit Manager Transparency Act

Prepared Floor Remarks by U.S. Senator Chuck Grassley of Iowa

Support The Pharmacy Benefit Manager Transparency Act

Tuesday, June 21, 2022

 

Mr. President, I come to the floor to talk about pharmacy benefit managers, or PBMs.

 

Many Americans may not know what a PBM is – yet the PBM market is nearly $500 billion and they are powerful in our pharmaceutical drug supply chain.

 

It’s our duty in Congress to understand how PBMs operate, hold them accountable and work to lower prescription drug costs for taxpayers and consumers.

 

In 2018, I pressed the Federal Trade Commission to investigate PBMs.

 

I saw the ongoing consolidation in the pharmaceutical supply chain and its impact on drug prices. 

 

But I didn’t wait for the FTC to act.

 

I’ve pursued bipartisan legislation, held hearings and conducted oversight.

 

Most recently, Senator Cantwell and I have introduced the PBM Transparency Act.

 

The bill prohibits PBMs from engaging in spread pricing.

 

This is a situation where PBMs charge an insurer more than they charge the pharmacy, and then they pocket the difference.

 

Iowans call that gaming the system.

 

Another practice we prohibit in our bill: clawbacks.

 

In Medicare Part D, these are sometimes called retroactive direct & indirect remuneration fees or DIR.

 

Iowa pharmacists have told me: clawbacks are costing patients more in higher co-pays and costing the pharmacy.

 

This practice is putting rural and independent pharmacists out-of-business.

 

In addition, our bill will incentivize fair & transparent PBM practices – benefiting consumers/taxpayers.

 

The bill has the support of community pharmacists, manufacturers and patient advocacy organizations.

 

Not surprisingly – the PBMs oppose my bill.

 

They say my bill is “anti-competitive” and an “expansion of power at the FTC.”

 

They also claim their industry is well regulated.

 

Nothing could be further from the truth!

 

My bill establishes transparency and accountability.  

 

Tomorrow, the Commerce Committee will mark up the PBM Transparency Act.

 

I don’t sit on the Commerce Committee, but I urge my colleagues to support this bill.

 

Finally, Mr. President, I’ve never given up on passing the bipartisan Wyden-Grassley, known as the Prescription Drug Pricing Reduction Act.

 

Despite the Democrats having the majority for 18 months, we’ve not passed a prescription drug bill.

 

By now, I would assume they’d be interested in advancing a bipartisan prescription drug bill –that can get 60+ votes, save taxpayers $95 billion and seniors $72 billion – rather than a partisan effort that doesn’t have 60 votes.