NLARx, the Consumer Federation of America, and US PIRG Letter to Sen. Reid Supporting PBM Transparency
Friday October 9th, 2009NLARx, CFA, US PIRG
Senator Harry Reid, Majority Leader
United States Senate
528 Hart Senate Office Building
Washington, D.C. 20510
Re: Senator Cantwell’s Amendment for PBM Transparency
Dear Senator Reid:
We are the nation's leading consumer rights organizations, the Consumer Federation and U.S. PIRG, and a bipartisan coalition of state legislators, the National Legislative Association on Prescription Drug Prices (“NLARx”). We are writing in support of Senator Cantwell’s amendment requiring transparency by pharmacy benefit managers (PBMs) which has been approved by the Finance Committee. We urge you to support this important legislation through the process to be included in the final health care bill.
The need for PBM reform is straightforward and compelling. PBMs represent the most rapidly growing segment of health care spending, and yet they are the only part of the health care market that is still unregulated. Because of the lack of regulation PBMs engage in fraudulent and deceptive practices, resulting in several enforcement actions by a coalition of state attorneys generals that have secured over $371 million in fines and penalties. At the same time the profits of the three major PBMs have skyrocketed from $900 million to over $2.7 billion annually. No other segment of the healthcare market has a record of such deceptive, egregious and anti-consumer practices. Transparency legislation is necessary to curb these harmful practices.
For more information:
Learn more about Pharmacy Benefit Managers