August 21, 2023 – Drug Pricing Reform Champions React to Staggering PBM Audit
Today, the Secretary of State released an audit of Pharmacy Benefit Managers’ harmful practices in Oregon, illuminating the need for increased regulations to protect Oregon patients and the pharmacies they rely on.
The report states: “Oregon has an opportunity to regulate PBMs to increase the value they provide to the Medicaid program by adopting leading practices to improve pharmacy access, improve transparency in the prescription drug process, and potentially save taxpayer dollars.”
“This audit’s findings strengthen our case. It confirms the need to move quickly to protect local pharmacies in every corner of our state and Oregonians who depend on them,” said Representative Nancy Nathanson (D – North Eugene), Chair of House Revenue Committee, Co-Chair of the Joint Committee on Tax Expenditures, and long-time drug pricing reform advocate. “I’m proud of the progress we made this session, but there is more to be done: you can be sure that I will bring strong PBM regulatory reform back to the legislature in 2024.”
In the 2023 session, the legislature passed House Bill 2725, banning PBMs from taking money back from pharmacies and the patients they serve, also known as “clawbacks”. Typically, minimal or vague explanation is given as to why money is being clawed back.
“Put simply, the behavior we have seen from PBMs towards both national and community pharmacists and their businesses is harmful,” said Representative Rob Nosse (D – Inner SE & Inner NE Portland), Chair of the House Behavioral Health and Healthcare Committee. “When you have a few massive PBMs monopolizing 80% of the industry making billions in profit with little to no oversight, it breeds exploitative practices—and patients are the ones on the losing end.”
The audit includes a series of recommendations to the legislature based on their analysis and can be found here or by visiting the Secretary of State’s website here.
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