FOR IMMEDIATE RELEASE
Contact: Paige Gehlhausen, Press Secretary
Paige.Gehlhausen@iga.in.gov
317-232-9425
Zay: Recent report highlights need for ongoing PBM monitoring, accountability
STATEHOUSE (July 12, 2024) — State Sen. Andy Zay (R-Huntington) is highlighting the importance of monitoring pharmacy benefit managers (PBMs) following a recent report showing PBMs are causing higher costs for patients.
PBMs, which operate like a middleman between drug producers and pharmacies, play a significant role in driving up the cost of prescription drugs. They operate in a very complex sector with little to no government oversight, making it even harder to regulate their business operations. Almost 80% of all U.S. prescriptions are controlled by three of the largest PBMs, which hold most of the power over patients' access to and price of the drugs.
A recent article from the Wall Street Journal stated that in two case studies of old cancer drugs, the Federal Trade Commission revealed how PBMs steered patients to their own pharmacies and away from unaffiliated ones, even when that meant patients would be charged up to 200 times what they could pay for the same drug at Costco.
"The power PBMs hold over prescription drug prices is extremely unfair to patients," Zay said. "I and many other lawmakers have been working for years on policies to hold PBMs accountable so that Hoosier patients are better protected from unreasonably high drug prices and receive more access to health care."
In 2023, Zay authored a bill to help rein in drug prices in Indiana, directing the Indiana Attorney General to conduct an audit of prescription drug prices covered through state programs once every three state fiscal years. Language from Zay's bill was included in House Enrolled Act 1445 (2023), which was passed by the Indiana General Assembly.
The PBM audit in Indiana is ongoing and should be completed by Sept. 1, 2024. Zay plans to meet with the Attorney General upon the conclusion of the investigation to discuss the results and what can come from the findings.
"Hoosiers deserve access to a health care system that prioritizes the patient rather than the revenue these big companies can make at the expense of the patient," Zay said. "I am eager to meet with the Attorney General after the completion of the audit to discuss the price of prescription drugs in Indiana, and I will continue working to find ways to get better results for Hoosiers."
To view the full report conducted by the FTC, click here.
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