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Senate helps supermarkets with drug pricing transparency

The Pharmacy Benefit Manager Transparency Act prevents anticompetitive practices

Bill Wilson, Senior editor at Supermarket News

March 24, 2023

2 Min Read
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FMI – The Food Industry Association has endorsed the U.S. Senate Commerce, Science & Transportation Committee’s approval of the bipartisan Pharmacy Benefit Manager Transparency Act (S. 127), led by Chairwoman Maria Cantwell (D-Wash.) and Sen. Chuck Grassley (R-Iowa), which would increase drug pricing transparency and help prevent several anticompetitive practices used by some pharmacy benefit managers (PBMs) that harm supermarket pharmacies, communities and customers.

The PBM Transparency Act would direct the Federal Trade Commission (FTC) and state attorneys general to stop unfair and deceptive PBM business practices, prohibit certain anticompetitive pricing schemes and incentivize transparent PBM practices. The markup follows the FTC launching a formal inquiry last year into the PBM industry and ramping up enforcement against those PBMs participating in rebate schemes that block access to cheaper drugs. 

FMI Chief Public Policy Officer Jennifer Hatcher stated, “The largest, vertically integrated PBMs create endless schemes to reduce reimbursement to the country’s most accessible and trusted health care professionals – pharmacists and their pharmacies – effectively forcing them to provide drugs below cost. Although supermarket pharmacies are critically important and convenient access points for consumers across the country – particularly in underserved, low-income, rural and urban communities – the unfair and manipulative tactics of these PBMs are driving food retailers out of the pharmacy business, limiting consumer access and choice. The combination of increased fees, lowered reimbursement rates and reduced access for patients due to PBM patient steering is unsustainable for supermarket pharmacies – particularly for an industry that operates on profit margins of just 1-2%.” 

Related:Drugstores adjust pharmacy hours amid staffing challenges

Hatcher concluded, “The PBM Transparency Act offers Congress a meaningful opportunity to bring greater transparency and accountability to PBMs.” 

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The U.S. Senate passed the Pharmacy Benefit Manager Transparency Act, which would increase drug pricing transparency and help prevent several anticompetitive practices used by some pharmacy benefit managers that harm supermarket pharmacies, communities and customers. Do you think this measure, if it becomes law, will help? Are anticompetitive practices a problem with your supermarket / community? Comment below or email your thoughts to SN Executive Editor Chloe Riley at [email protected].

 

About the Author

Bill Wilson

Senior editor at Supermarket News

Bill Wilson is the senior editor at Supermarket News, covering all things grocery and retail. He has been a journalist in the B2B industry for 25 years. He has received two Robert F. Boger awards for his work as a journalist in the infrastructure industry and has over 25 editorial awards total in his career. He graduated cum laude from Southern Illinois University at Carbondale with a major in broadcast communications.

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