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Senate panel to hear from pharmacy middlemen on drug prices

Senate panel to hear from pharmacy middlemen on drug prices
© Stefani Reynolds

The Senate Finance Committee said Thursday that it has secured commitments from executives of five major pharmacy benefit managers (PBMs) to testify next month about the high costs of prescription drugs.

Committee Chairman Chuck GrassleyChuck GrassleyOn The Money: Biden says workers can't turn down job and get benefits | Treasury launches state and local aid | Businesses jump into vax push Grassley criticizes Biden's proposal to provide IRS with B The Hill's Morning Report - Presented by Facebook - Infrastructure, Cheney ouster on deck as Congress returns MORE (R-Iowa) and ranking member Ron WydenRonald (Ron) Lee WydenBad jobs report amplifies GOP cries to end 0 benefits boost Putting a price on privacy: Ending police data purchases Overnight Health Care: Biden sets goal of at least one shot to 70 percent of adults by July 4 | White House to shift how it distributes unallocated vaccines to states MORE (D-Ore.) said executives from Cigna, CVS, Humana, OptumRx and Prime Therapeutics have agreed to appear on April 9.

The hearing will be the third time the Finance Committee has heard about drug prices.

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Both lawmakers have been critical of PBMs, which are often referred to as “middlemen.” PBMs administer prescription drug plans for large employers and are tasked with negotiating discounts on drugs with pharmaceutical firms and insurers.

“Middlemen in the health care industry owe patients and taxpayers an explanation of their role. There’s far too much bureaucracy and too little transparency getting in the way of affordable, quality health care,” Grassley and Wyden said in a joint statement. “We’ve heard from pharmaceutical companies and it’s only fair that the committee has the opportunity to ask questions of other players in the health care supply chain.”

Members of the Finance Committee grilled drug company executives last month about their role in rising costs, an issue that has elicited outrage from the American public and bipartisan members of Congress.

The drug price wars have featured significant intra-industry finger-pointing, and the February hearing was no different. The drug company executives did not commit to lowering list prices, instead blaming the convoluted system of PBMs and insurers for not passing savings on to customers.

Four of the country’s largest PBMs are also now integrated with health insurance companies.

President TrumpDonald TrumpCaitlyn Jenner says election was not 'stolen,' calls Biden 'our president' Overnight Health Care: FDA authorizes Pfizer vaccine for adolescents | Biden administration reverses limits on LGBTQ health protections Overnight Defense: US fires 30 warning shots at Iranian boats | Kabul attack heightens fears of Afghan women's fates | Democratic Party leaders push Biden on rejoining Iran deal MORE has made lowering drug costs a key issue, while Democrats in Congress and on the campaign trail are working overtime to show they can lead on the issue.