November 16, 2023

Employer Coalition Urges Congress to Pass PBM Reforms This Year

EmployersRx and allies urge Congress to continue its momentum to eliminate PBM business practices driving up the cost of drugs for American businesses and workers.

The Employers’ Prescription for Affordable Drugs (EmployersRx), a coalition of employers formed in 2019 to advocate for policies that address the high cost of prescription drugs, along with 50 other organizations representing employers, patients representing a wide range of industry sectors call on Congress to pass strong pharmacy benefit manager (PBM) reforms this year to address rising health care costs.

“Given the outsized role prescription drugs play in rising health care costs, it is essential that Congress pass reforms that will ensure transparency and accountability in the PBM industry,” said Alan Gilbert, Vice President of Policy for the Purchaser Business Group on Health (PBGH), which leads the EmployersRx coalition. “While no one expects PBMs to perform their services without remuneration, we must ensure these companies are not allowed to engage in practices whereby employers, health plans and patients are charged more for a drug than the PBM paid the pharmacy for that drug.”

EmployersRx and the 50 participating organizations call on Congress to pass reforms that require full and complete transparency and reporting, ban spread pricing, require PBMs to pass-through 100% of all rebates, discounts and fees and hold PBMs accountable the same way employers are held accountable.

“We are encouraged by the progress that has been made in the Senate and urge Congress to act quickly to pass these reforms into law,” said James Gelfand, President and CEO of The ERISA Industry Committee (ERIC). “Implementing these common-sense, free-market reforms will help to ensure that employers, health plans and patients have access to affordable prescription drugs.”

EmployersRx is committed to working with Congress to ensure that PBM reforms are passed this year. The coalition is urging Congress to take action to ensure that employers, health plans and patients are not paying more for drugs than they should be.