Lawmakers Introduce Patients Before Monopolies Act to Address PBM Ownership of Pharmacies
Representatives Diana Harshbarger and Jake Auchincloss, alongside Senators Elizabeth Warren and Josh Hawley, have co-sponsored the Patients Before Monopolies Act. This proposed legislation aims to prevent parent companies of insurers or pharmacy benefit managers (PBMs) from owning pharmacy businesses. The bill specifically targets major entities like CVS Health, Cigna, and UnitedHealth, which currently operate both PBMs and pharmacies. If enacted, it would mandate that these companies divest either their PBM operations or their retail pharmacies. The legislation grants explicit authority to the Federal Trade Commission (FTC), Department of Justice (DOJ), Department of Health and Human Services (HHS), and state attorneys general to enforce these divestitures. This initiative comes amidst ongoing concerns regarding the market power of PBMs, particularly their alleged role in inflating prescription drug prices, such as insulin, by incentivizing higher list prices for rebates rather than promoting lower-cost a...