Bipartisan Bill Targets PBMs’ Pricing Practices, Aims to Save $2 Billion

A bipartisan group of U.S. Senators, including Mark Warner, Peter Welch, Roger Marshall, and Bill Cassidy, has introduced the Protecting Pharmacies in Medicaid Act to combat the abusive pricing practices of pharmacy benefit managers (PBMs), particularly targeting 'spread pricing.' This practice, where PBMs charge Medicaid more than they reimburse pharmacies for drugs, is criticized for increasing costs for Medicaid and threatening the viability of independent pharmacies. The proposed legislation aims to save Medicaid an estimated $2 billion over ten years by limiting these practices, thus supporting both patients and local pharmacies. Advocates emphasize that independent pharmacies are crucial for rural communities and that the bill represents a significant step towards reform. Additionally, related efforts in other states and proposed federal reforms indicate a growing bipartisan movement to increase transparency and fairness in the pharmaceutical supply chain. Despite previous setbacks, there is renewed momentum for legislation addressing PBM practices in Congress.