Tony Losaso (presented as an economics professor at DePaul University) testified at the council meeting that PBMs serve a market function as buyers and negotiators in a supply chain dominated by manufacturers with exclusive rights to their medicines. Losaso told the council he was invited by PCMA, the PBM trade association, and said the association compensated him for his time and expenses.

Losaso argued the following points in his testimony: rebates are negotiated price reductions that are passed through to payers and that the PBM layer is the primary mechanism that enforces price competition among manufacturers. He said removing or substantially weakening PBMs without a functioning replacement would likely lead to higher prices for payers and patients. Losaso also told the council that while transparency is valuable, making certain contract terms public could have unintended consequences by revealing negotiation positions and leading to higher prices in some circumstances.

Council members pressed Losaso on specifics: who negotiates with GPOs, whether PBM‑owned affiliates and offshored GPOs are subject to U.S. regulation, and on his funding source. Losaso confirmed he was asked to testify by PCMA and that PCMA paid for his time and expenses. He said his testimony should be read as general economic analysis rather than as a detailed, insider description of PBM contract mechanics.

Why it matters: Losaso’s remarks articulate the economic argument often offered in defense of the PBM layer — that intermediaries provide negotiating power and market discipline that can reduce net drug prices. His funding by PCMA and the absence of PBM leadership at the council drew several members’ scrutiny during question‑and‑answer.

Follow up: Council members requested additional data and noted they still wanted PBM leadership and employers to appear for a fuller record.