Both Democrats and Republicans were critical of pharmacy benefit managers in a May 13 hearing of the Senate Judiciary Committee titled “PBM Power Play: Examining Competition Issues in the Prescription Drug Supply Chain.” Senators from both parties raised concerns about the concentrated market control of the “Big Three” PBMs, which now dominate 80 percent of the prescription drug market and remain vertically integrated, contributing to high drug costs and limiting patient access. Several witnesses testified to the harmful effects of PBM practices, particularly on independent pharmacies.
Chairman Chuck Grassley (R-Iowa) and Ranking Member Dick Durbin (D-Ill.) both called out how PBMs are harming local pharmacies and the need for legislation on this bipartisan issue. Tensions rose during the hearing, with Sen. Josh Hawley (R-Mo.) pressing the PBM industry on accountability and conflict of interest. Sen. Thom Tillis (R-N.C.) called out the need for audits in the Tricare pharmacy contract. Sen. Marsha Blackburn (R-Tenn.) cited examples of discriminatory reimbursement rates favoring PBM-owned pharmacies. The meeting concluded with Sen. Cory Booker (D-N.J.) calling for bipartisan action. NCPA is submitting a statement for the record for this hearing and is encouraged by the continued bipartisan support for PBM reform.
Hearing witnesses included Sharon Faust, chief pharmacy officer of Navitus; Randy McDonough, pharmacy owner and president of the American Pharmacists Association; Juan Carlos Scott, CEO of the Pharmaceutical Care Management Association; Sheetal Kircher, professor of hematology and oncology at Northwestern Medicine; and Neeraj Sood, professor at the University of Southern California.
