SAINT PAUL, MINNESOTA – The Minnesota House today approved Representative Alice Mann’s bill (H.F. 728) to lower the cost of prescription drugs by regulating, requiring transparency from, and creating fiduciary responsibilities for Pharmacy Benefit Managers (PBMs), which serve as pharmaceutical middle men.
“We can’t let a key player in an industry that represents nearly a fifth of our economy operate in obscurity,” said Rep. Alice Mann (DFL-Lakeville). “We have a responsibility to increase transparency and accountability in health care to make sure that Minnesotans can afford the medications they need to survive.”
PBMs are a middle man between drug manufacturers and pharmacies, developing and maintaining lists of covered drugs (formularies) that they offer to pharmacies. Drug manufacturers give PBMs rebates – or kickbacks – to encourage the PBM to place their product on the formulary, with no guarantee that the rebate will be passed on to consumers. Higher rebates incentivize PBMs to remove less expensive drugs from formularies, and encourage companies to raise list prices. All of this raises the price of prescription drugs. Continue reading “Minnesota House passes bill regulating pharmaceutical middle men”