PhRMA witness tells insurance committee 340B program and PBMs can raise costs for patients and employers

Summary

Leslie Wood of the Pharmaceutical Research and Manufacturers of America told the House Insurance Committee that pharmacy benefit managers, 340B program growth and hospital markups have driven higher costs for patients, employers and state governments and urged policy changes to ensure rebates and discounts reach patients.

Leslie Wood, regional vice president of state policy at the Pharmaceutical Research and Manufacturers of America (PhRMA), told the House Insurance Committee that prescription drug spending has remained a stable share of health-care spending over the past two decades but that parts of the supply chain are driving higher costs for patients and employers.

"Spending on medicines really has been a stable share of healthcare spending over the last 20 years," Wood said. She said net spending on medicines increased about 2.3% in 2023 and that nearly 90% of prescriptions are filled with a generic medicine.

Wood described how pharmacy benefit managers, or PBMs, and other intermediaries capture a substantial share of spending on branded medicines. "More than half of every dollar spent on branded medicines goes to entities…

PhRMA witness tells insurance committee 340B program and PBMs can raise costs for patients and employers

Summary

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