HHS Secretary Criticizes PBMs in Flint Visit

U.S. Health and Human Services Secretary Xavier Becerra was highly critical of pharmacy benefit managers (PBMs) in a visit to Flint on Wednesday at an event coordinated with the assistance of the Michigan Pharmacists Association,

“We want to get rid of the middlemen that are making it really difficult for some of the independent pharmacies right now,” Becerra said. “These PBMs, pharmacy benefit managers, that are out there, that are essentially controlling the market — I say that somewhat figuratively, controlling the market and how their drugs are dispensed and are priced. We think that those middlemen who are sucking money out of the system that never actually goes to provide health care or provide medicine, really is a disservice to everybody, including the taxpayer.”

Becerra was in Flint touting the effects the Inflation Reduction Act has had on lowering prescription drug costs. He said the Biden administration was committed to policies and funding that continue to support independent pharmacies. The secretary’s comments come on the heels of a scathing Federal Trade Commission interim staff report on PBMs that was released Tuesday.

In the report, the FTC said increasing vertical integration and concentration has enabled the six largest PBMs to manage nearly 95 percent of all prescriptions filled in the United States, allowing PBMs to profit at the expense of patients and independent pharmacists. The interim report also found that PBMs hold substantial influence over independent pharmacies by imposing “unfair, arbitrary and harmful contractual terms that can impact independent pharmacies’ ability to stay in business and serve their communities.”

Becerra was joined by MPA Director of Government Affairs Eric Roath and MPA members John Gross and Bryan Homberg of Flint Family Pharmacy. Roath said the FTC report highlights a few important areas lawmakers should focus on to lower prescription drug costs and urged them to continue investigating the core causes that are making it more difficult for people to receive essential medications.

“Our pharmacies strive for every opportunity to serve our patients in an accessible and sustainable manner,” Roath said. “Ultimately, this means better access to essential health care services, including medications for all citizens, but especially for our most vulnerable patient populations. Lower costs and sustainable pharmacy access is a key component to ensuring equitable health outcomes for all Michiganders and Americans.”

Read more on the secretary’s visit to Flint here (paid subscription required).