Transparency-Rx, a new not-for-profit coalition led by transparent pharmacy benefit managers (PBMs), today released the following statement after the Senate Finance Committee passed the Better Mental Health Care, Lower-Cost Drugs, and Extenders Act:
“Transparency-Rx is grateful to Chairman Wyden and Senator Crapo for their efforts to provide greater clarity on PBM practices and reduce out-of-pocket costs for Medicare Part D beneficiaries. The bill passed by the Finance Committee today de-links PBM’s Medicare revenues from the price of drugs, bringing the program more in line with business practices used by transparent PBMs,” said Transparency-Rx Managing Director Joe Shields.
“Because the legislation only impacts Medicare, this represents a necessary, but not sufficient, first step to meaningful reform of the PBM industry. For too long, big PBMs have protected a broken system that hides profits and raises prices for employers and patients. But local businesses that use transparent PBMs save an average of $20 per prescription when compared to other PBMs. The differences are clear and the time for action is now. Congress should pair the Finance Committee bill with S. 1339, legislation coming out of the HELP Committee, which would reform PBM practices in the commercial market. We look forward to further partnering with Congress on these important measures to establish a fair and competitive marketplace.”
Transparency-Rx launched in September 2023 with a forward-looking policy platform that embraces many of the industry changes currently under consideration by Congress and increasingly advanced by state policymakers. These include a ban on spread pricing, instituting a 100% pass-through model for discounts, de-linking PBM fees from the price of drugs, reform of group purchasing organizations tied to big PBMs, and technology that backs data sharing with patients, insurers, pharmacists, and other stakeholders.
Transparency-Rx’s growing coalition represents more than 14.5 million lives across all 50 states. Founding members include AffirmedRx, Liviniti, MedOne Pharmacy Benefit Solutions Rx, Navitus Health Solutions, RxPreferred Benefits and SmithRx. Additional information about Transparency-Rx is available here.