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House urges investigation of pharmacy benefit managers, sponsors say rebates not reaching patients
Summary
A House resolution urged the attorney general and Department of Insurance to investigate pharmacy benefit managers (PBMs). Supporters said PBMs may keep rebates and steer prescriptions to PBM‑owned pharmacies rather than passing savings to patients or plan sponsors.
The House adopted a resolution urging the attorney general and the state Department of Insurance to investigate pharmacy benefit managers and their potential anti‑competitive practices.
Representative Miller, sponsor of the resolution, said PBMs act as middlemen negotiating manufacturer rebates and may also own pharmacies, creating a potential conflict. "PBMs were created to negotiate prices and make them cheaper for the patient," Miller said. "Now they've only became making the PBMs pocket fatter."
Members asked whether the resolution could lower pharmacy costs for constituents. Miller said the resolution would increase oversight and transparency, and he described cases where rebates negotiated by PBMs were not passed to patients, plans, or independent pharmacists. Representative Dane said small pharmacies in his district were struggling to compete with chains and PBM-owned outlets.
The House moved to final adoption and the clerk recorded the vote as 92 yays and 0 nays. The resolution passed unanimously by a large margin. Sponsors asked the attorney general and Department of Insurance to report back; the resolution did not prescribe specific enforcement steps.
Ending: The resolution asks state enforcement and regulatory agencies to investigate PBM practices and report findings to the legislature; watchers said any legislative remedies would follow agency review.
