U.S. Sens. Ron Wyden (D-OR) and Mike Crapo (R-ID) introduced legislation that will bring more transparency, accountability and competition to pharmacy benefit manager practices.
The Modernizing and Ensuring PBM Accountability (MEPA) Act will prohibit pharmacy benefit manager compensation in Medicare from being linked to the sticker price of a drug, and increases transparency by forming independent audit and enforcement measures. Additionally, legislation provides relief to independent community pharmacies that are often harmed by PBM business practices. Wyden, Senate Finance Committee Chair and Crapo, the committee’s ranking member, said the legislation reflects their commitment to regulating PBM practices.
“Today’s introduction marks the next step towards taking on health care middlemen that are driving up costs for seniors and taxpayers,” Wyden said. “Senator Crapo and I are committed to continuing our work with members of the committee who are interested in including additional policies beyond those in this bill. I look forward to continuing our work, passing this into law and curtailing the PBM practices that are keeping drug prices high.”
The legislation is supported by the Alliance for Transparent and Affordable Prescriptions; the Alliance of Community Health Plans; the Arthritis Foundation; the Coalition of State Rheumatological Organizations; the Cystic Fibrosis Foundation; the National Community Pharmacists Association; the National Consumers League; and a large coalition of patient groups.
“This commonsense, bipartisan legislation takes crucial steps toward driving down prescription drug costs for Idahoans and ensuring that seniors can access the pharmacy of their choice, including in rural communities,” Crapo said. “The comprehensive proposals included in this bill will enhance oversight of pharmacy benefit managers and improve incentives across Medicare and other federal health programs. Moving forward, we will continue to build on this foundation through additional priorities from Senators across the Finance Committee to promote pharmacy access, strengthen accountability, and reduce out-of-pocket costs for patients.”