Georgia Congressman Buddy Carter (R-GA-01) is making another attempt to limit the power of pharmacy benefit managers (PBMs) “to artificially spike Medicaid drug prices.” Carter joined Rep. Vicente Gonzalez (D-TX) in re-introducing the bi-partisan Drug Price Transparency in Medicaid Act. The bill was first introduced in 2019 by Carter during the 116th Congress with bipartisan support.
U.S. Rep. Buddy Carter
According to Carter, the only pharmacist in the U.S. House, this legislation 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, Carter says.
Prescription drug prices are way too high,” said Carter. “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.”
Carter commended Congressman Gonzalez for joining the bipartisan efforts, and thanked him for his “commitment to protecting the lives, health, and pocketbooks of patients across America.”
According to Carter, 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, according to Carter.
“Americans deserve transparency and accountability in their drug pricing, and the Drug Price 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.”
