A recent article, (“In health care, PBMs are crucial — but not regulated” — Capitol Weekly, July 14),” inaccurately claims the pharmacy benefit management (PBM) industry is somehow unregulated. The reality is this: PBMs are a highly regulated industry at the federal and state level.
At the state level, mail-service pharmacies, operated by PBMs are regulated by Boards of Pharmacy, and PBMs acting as third-party administrators register with the Department of Insurance.
However, the legislation (AB 315) being debated in California calls for new health mandates that, according to the Federal Trade Commission, could raise prescription drug costs for consumers, employers, and public programs.
PBMs typically reduce prescription drug costs by 30 percent for consumers and employers, resulting in savings of $654 billion over 10 years nationally and $73.5 billion in California according to a recent study.
New government mandates will raise, not lower, prescription drug costs.
President and CEO, Pharmaceutical Care Management Association