Washington, D.C. – Congresswoman Elise Stefanik cosponsored bipartisan legislation to drive down the cost of prescription medication by banning the use of spread pricing by middlemen like pharmacy benefit managers (PBMs), which would limit their power to artificially spike drug prices.
Specifically, the Drug Price Transparency in Medicaid Act, led by Congressman Buddy Carter (R-GA), would ban the use of spread pricing by PBMs in Medicaid-managed care. This legislation would save taxpayers billions by eliminating wasteful spread pricing.
“I’m working to drive down prescription drug prices on behalf of the health of our seniors who rely on pharmacies for their medications,” Stefanik said. “The Drug Price Transparency in Medicaid Act will ensure drug prices are not needlessly being driven up. I am proud to support this effort to empower our pharmacies who are critical to accessing medications and protect access to care for our seniors.”
“The Drug Price Transparency in Medicaid Act is a significant step in combating the abuse of our healthcare system by Pharmacy Benefit Managers (PBMs). Regulating these entities at the federal level will put a stop to their profiteering, provide transparency to the state Medicaid programs, and save tax payers significant money. All the while ensuring that community pharmacies are no longer forced to lose money when dispensing Medicaid prescriptions and can continue to serve their communities. We truly appreciate the Congresswoman's leadership on this important issue,” said Steve Moore, Owner of Condo Pharmacy in Plattsburgh.
Spread pricing occurs when a PBM charges health plans for prescription drugs more than they pay the pharmacy. Instead of passing the full payment on to pharmacies, PBMs keep the “spread” as profit.
Read full bill text here.