Press Releases

Today, Reps. Earl L. “Buddy” Carter (R-GA) and Vicente Gonzalez (D-TX) introduced bipartisan legislation that would limit the power of pharmacy benefit managers (PBMs) to artificially spike Medicaid drug prices.

The Drug Price Transparency in Medicaid Act bans the use of spread pricing by middlemen (PBMs) in Medicaid managed care. PBMs drive up prescription drug costs without adding any value to the consumer.

“Prescription drug prices are way too high. As a Pharmacist, I’ve seen the pain in patient’s eyes as they make the impossible choice between paying for food and paying for medication. With this bill, we can radically decrease drug prices and put power back into the hands of the patients, without expensive or heavy-handed government programs. I want to thank Congressman Gonzalez for his support and commitment to protecting the lives, health, and pocketbooks of patients across America,” said Carter. 

“Americans deserve transparency and accountability in their drug pricing, and the Transparency in Medicaid Act will do just that,” said Gonzalez. “This legislation will offer solutions to policies that have been negatively affecting healthcare and prescription drug costs for far too long. I’m proud to introduce this bipartisan bill with Congressman Carter to protect South Texas patients and community pharmacies.” 

 Spread pricing occurs when a PBM charges health plans for prescription drugs more than they pay the pharmacy. Instead of passing the full payment on to pharmacies, PBMs keep the “spread” as profit.

The bill was originally introduced in the 116^th Congress with bipartisan support.