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Employers, insurers and PBMs explain competing pressures; state insurance office outlines licensure work
Summary
Kansas employers and the Department of Insurance told a legislative committee that PBMs (pharmacy benefit managers) help employers control drug spending but that opaque contracts, spread pricing and vertical integration have created market distortions. Kansas regulators described the state's PBM licensure law and a loophole affecting third‑party
TOPEKA, Kan. — Business representatives, benefits administrators and state insurance officials described a mixed picture to a legislative committee on Oct. 25: employers say PBMs help manage drug costs, while employers, pharmacies and the Kansas Department of Insurance warned that opaque terms and vertical integration can distort markets and harm community pharmacies.
PBMs’ role and employers’ view: Andrew Wiens, executive director of Kansas Employers for Affordable Health Care, told the committee that employers rely on PBMs to negotiate rebates, encourage use of generics and manage formularies. “Employers use pharmacy benefit managers because they save employers money,” he said, noting that PBMs produce measurable savings for many self‑funded plans.
“PBMs save payers and patients an average of $10.40 per person per year,” Wiens said, citing…
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