Pharmacy benefit managers tell House panel they lower drug costs but urge caution on further state action

Lansing The House Insurance Committee heard a presentation from Sean Stephenson of the Pharmaceutical Care Management Association (PCMA), who said pharmacy benefit managers (PBMs) deliver cost savings and a range of services to payers and patients but urged lawmakers to weigh consequences before pursuing additional state reforms.

Stephenson described PBMs as private-sector contractors hired to administer prescription benefits for employers, insurers and government programs. "A PBM is a health care company hired by insurers, employers, and government programs to administer their prescription drug benefit," he said, and he offered PCMA figures that PBMs cover roughly 289 million lives nationally and that PBM tools save an average of about $1,154 per covered life.

The nut graf: PCMA told the committee PBMs negotiate manufacturer rebates, pharmacy discounts, operate mail-order and specialty…