ICYMI: Pennsylvania Leaders, Pharmacists, and Consumers Praise Shapiro Administration’s Bipartisan Reforms to Increase Oversight of Pharmacy Benefit Managers (PBMs) (2024)

Harrisburg, PA – Last week, Governor Josh Shapiro joined Pennsylvania Insurance Commissioner Michael Humphreys, members of the General Assembly from both parties and local pharmacists from across the Commonwealth to highlight the bipartisan reforms that increased oversight of pharmacy benefit managers (PBMs), the hidden “middlemen” of the pharmaceutical supply chain who largely go unchecked and unregulated as they negotiate the price of prescription drugs, passing the costs down to Pennsylvanians.

During his 2024-25 budget address Governor Shapiro called for legislation to reform the operations of PBMs to help Pennsylvanians impacted by the rising costs of prescription drugs and bring price transparency into the pharmaceutical supply chain. The bipartisan HB 1993 grants the Pennsylvania Insurance Department (PID) the authority to regulate PBM practices and contains several important protections that will benefit commercially insured Pennsylvanians. These new reforms will help cut costs for consumers, increase transparency and accountability into PBMs, and support local pharmacies.

Read what elected officials and community leaders are saying about reforming PBMs:

• Representative Jessica Benham: “I’ve spoken with independent pharmacy owners in big cities, small towns, and everywhere in between, and the story is always the same: that the pharmaceutical industry is currently set up to allow large corporations to dominate the market and drive up the cost of prescription drugs. I know that my bill, which Governor Shapiro signed into law last week, will help more community pharmacies stay in business, and I’m so proud we were able to come together in a bipartisan fashion to get this done.”

• Senator Judy Ward: “I was thrilled to celebrate the signing of pharmacy benefit manager reform (PBM) legislation at Thompson’s Pharmacy in my hometown of Hollidaysburg. Bill Thompson was the first to bring the unfair business practices of PBMs and the urgent need for reform to my attention. This legislation will provide critical relief to pharmacies across Pennsylvania and help them to continue to offer high-quality care to the countless people that depend on them.”

• Senator Michele Brooks: "Unfortunately, we are seeing many of our community pharmacies closing. At a time when families are sick and they are most vulnerable, it’s comforting to know that in our communities we have a hometown pharmacist that we trust, can talk to, and answer our questions. Hopefully, HB1993 brings us one step closer to helping pharmacies remain in our communities."

• Pennsylvania Insurance Commissioner Michael Humphreys: “Governor Shapiro has been unwavering in his push for bipartisan legislation that had the tools to reform the operations of PBMs. With the signing of this bill, our department now has the necessary resources to protect commercially insured Pennsylvania consumers and increase transparency and accountability when it comes to PBMs. Most importantly, this allows PID to gain a stronger understanding of the drivers of prescription costs, which will subsequently help us ensure consumers are paying a reasonable price for their medication, at a pharmacy nearby.”

• Representative Valerie Gaydos: “This was truly a bipartisan effort, it was bicameral. And we couldn’t have done it without everybody working together, and of course, having Governor Shapiro sign this bill. We all know that medication management is the most important aspect of health care from your doctor to your pharmacist to you and all doctors and pharmacies deal with PBMs but many of the practices that were set forth by PBMs have resulted in barriers to really providing good health care. This law signifies the dedication that fostering healthcare and healthcare environments, upholds patient welfare and supports our local pharmacies, which are really a vital portion of our communities.”

• Ron McDermott, Senior VP of Operations at Hometown Pharmacy Solutions: “This legislation is a steppingstone to curtailing and regulating some of the harmful and unfair business practices of PBMs that are one-sided and unilaterally imposed on both our community pharmacies and our patients who want to visit our pharmacies. Community pharmacies do the extras that the most vulnerable patients need to stay healthy and out of the hospital. Whether it’s special compliance packaging, home delivery, or extra time discussing their medications with their pharmacist – access to these pharmacies is critical! Our pharmacies are there because we want to help and treat our patients.”

• Bill Thompson, pharmacist: “Community pharmacies do the extras that the most vulnerable patients need to stay healthy and out of the hospital. Whether it’s special compliance packaging, home delivery, or extra time discussing their medications with their pharmacist – access to these pharmacies is critical. Our pharmacies are here because we want to help and treat our patients. The Pennsylvania Insurance Department will now have the authority to regulate and correct PBM injustices. As a result, access to quality healthcare will be more readily available to patients and our pharmacies should suffer less harm from the anti-competitive tactics used by PBM’s.”

• Joe Breton, pharmacist: “Having convenient access to quality pharmacy care is important. How many times have any of us been out running errands and when we get home realize we forgot one, even something as important as picking up a prescription? Imagine if that was you and then you had to turn around and drive 15 miles back to the pharmacy because I had to close the doors to my pharmacy due to PBMs. I know many people, myself included, would think ‘do I really need that medicine today?’ Keeping pharmacies open in rural areas helps people take their medications daily and prevents more serious medical complications.”

• Kathy Kilgore, customer at Thompson Pharmacy: “Thompson’s has been my pharmacy for many, many years. You walk in and all these guys are great. You have a question about how to take this med, they’re right there beside you telling you how to take it, and they’re going to make sure you’re doing it well. You don’t get that at Walgreens or Rite-Aid or CVS.”

• Jack Melvin, customer at The Hometown Pharmacy: “The bedrock of an economy whether it's in the Commonwealth of Pennsylvania or anyplace else, is going to be the small businessman, and if we let them go under, whether it happens to be healthcare, manufacturing, whatever it happens to be, we are not going to have an economy. To leave the big boys run everything and take all the money, you can't as a private owner stay in business. That's the reason the Governor is so valuable to us.”

See what Pennsylvanians are reading about HB 1993 and the Shapiro Administration’s bipartisan PBM reforms:

Pittsburgh Post-Gazette: 'We have some transparency': New law promises lower prescription prices for Pennsylvanians

The Tribune-Democrat: Shapiro touts PBM regulation law in New Castle visit

WESA: Gov. Josh Shapiro signs bill to regulate the middle men of pharmaceutical drug prices

Bedford Gazette: Shapiro signs bill reining in PBMs

Lehigh Valley Business: Pennsylvania pharmacists react to PBM Reform bill

Altoona Mirror: Shapiro lauds new pharmacy legislation

Times Leader: New laws increase transparency, accountability of pharmacy benefit managers

Observer-Reporter: Bipartisan effort tries to tackle crisis facing local pharmacies in Pennsylvania

WKBN: Pa. prescription reform will help keep local pharmacy open

WTAJ: Governor Josh Shapiro celebrates pharmacy reform in Hollidaysburg

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