Bipartisan bill seeks to stop pharmacy middlemen from driving up drug costs for financial gain

A new bill from a group of bipartisan lawmakers aims to reform the incentive structure for Pharmacy Benefit Managers in an effort to end price gouging and lower prescription drug costs for consumers.

PBMs are third-party intermediaries between insurance companies, drug manufacturers and pharmacies that serve to control drug prices and access. The current incentive structure for PBMs, according to the DRUG Act's sponsors, encourages them to drive up the list price of drugs to increase profits.    

"Pharmacy benefit managers (PBMs) have excessive influence over the prices patients pay at the pharmacy counter," said Miller-Meeks. "Local Iowa pharmacies are closing due to greedy PBM practices, impacting proximity and access to medications for Iowans. The DRUG Act will put downward pressure on prescription drug prices and insurance premiums by removing the incentive for PBMs to drive up the list price of medications."