The corporate middlemen are frequently blamed for pharmacy closures across the Commonwealth.
Republican state senators recently released a new proposal that would give the Office of Attorney General more power to challenge the practices of pharmacy benefit managers, often referred to as PBMs.
Republican state senators Wayne Langerholc, Judy Ward, and Pat Stefano are aiming to increase oversight of PBMs in the state.
The proposal would allow the state’s top prosecutor to take on PBMs on behalf of patients, and would authorize the office to review how PBMs handle contract renewals and terminations with pharmacies.
Hundreds of pharmacies have closed across Pennsylvania in recent years, and more closures are planned.
A 2024 law was enacted to “rein in PBMs that were destroying local pharmacies and jeopardizing the health and safety” of Pennsylvania residents, the Republican state senators said in a February memo to colleagues.
“While these reforms were an important step forward, more must be done to protect access to essential medical care,” said the memo.
PBMs administer drug plans for employers and insurance companies, with many critics saying they drive up costs for patients and use predatory practices while insufficiently reimbursing pharmacies. They are widely blamed for the extensive pharmacy closures across Pennsylvania, leaving many patients without easy access to their prescriptions.
“Independent community pharmacies have a choice: Either stay in business and lose money, or go out of business. The crisis still does exist because of the reimbursement issues and the issues that the PBMs are forcing upon individual pharmacies,” said Eric Pusey, a Lackawanna County pharmacist and pharmacy owner, in a recent interview.
Under the proposal from the senators, the Office of Attorney General would be authorized “to review all contractual renewals and terminations between pharmacies and PBMs to assess their impact on local communities.”
The lawmakers also said that the proposed bill would grant the Office of the Attorney General new “authority to pursue legal remedies against PBMs on behalf of the commonwealth and its residents.”
The Pennsylvania proposal comes as President Trump is pursuing action against PBMs and their deceptive practices at the federal level.
The Department of Labor recently issued new requirements for disclosing their financial dealings with drugmakers and pharmacies. The proposed rule was announced following an executive order by President Trump aiming to lower drug prices.
Under the proposed rule, PBMs would have to make semiannual disclosures to employers of what they earn for negotiating drug prices on behalf of health plans.
