Transparency‑Rx applauds the passage of the bipartisan government funding bill. The PBM reform language included in the package is an important first step in helping to foster lower prices for patients and the business community and should promote meaningful competition and clarity. These policy changes are a valuable market correction for a drug supply chain dominated by exclusionary conduct, opacity, and the hidden off shoring of American patient discounts in foreign countries.
Critically, we also believe these reforms align with and bolster key provisions of President Trump’s recently announced great healthcare plan, and specifically his powerful focus on middlemen, PBM rebates, and aligned brokers, as the Administration works to build of an American, and more resilient pharmacy supply chain.
Sadly, PBM conglomerates want America to continue to suffer under antiquated ideas doubling down on arbitraging patients at the pharmacy counter and furthering a misaligned system which research shows increases patients’ costs and undercuts positive health outcomes.
Congress’ necessary bipartisan reforms have generated wide support and will produce significant savings, as demonstrated by the embrace from nearly every healthcare stakeholder besides the interests of monopoly PBMs and their insurance parent companies.
Key provisions in the package include:
- Requires full rebate pass-through to the plan (with protections for innocent plan fiduciaries) including for “offshore” middlemen rebates companies stood upon in opposition to changes proposed during the first Trump Administration.
- Advancing Medicare Part D “delinking” / pass-through reform which reduces incentives tied to high list prices and rebate-driven compensation to the benefit of seniors and retirees.
- Strengthens contract transparency and audit rights, improves visibility into rebate arrangements (including aggregator-related agreements).
- Standardizes PBM definitions and guarantees and creates confidential reporting and anti-retaliation protections.
We look forward to working with the Senate to ensure swift passage of the PBM reform language which will bring relief to millions of Americans.