[Congressional Record Volume 158, Number 63 (Monday, May 7, 2012)]
[Extensions of Remarks]
[Pages E713-E714]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       PHARMACY BENEFIT MANAGERS

                                 ______
                                 

                       HON. JESSE L. JACKSON, JR.

                              of illinois

                    in the house of representatives

                          Monday, May 7, 2012

  Mr. JACKSON of Illinois. Mr. Speaker, I rise today to express my 
strong support of H.R. 4215--The Medicare Pharmacy Transparency and 
Fair Auditing Act. This bill, introduced by Ms. McMorris-Rodgers and 
Mr. Ross, has bipartisan support and will result in more competitive 
practices in the Pharmaceutical industry. H.R. 4215 will require 
increased regulation of Pharmacy Benefit Managers, also known as PBMs, 
to ensure that consumers are receiving the care they deserve at 
competitive and fair costs.
  Mr. Speaker, within the pharmaceutical industry there is a pressing 
issue concerning the lack of transparency surrounding PBM business 
practices. We cannot afford to allow these businesses to continue as 
usual in the pharmaceutical industry. The recent Express Scripts and 
Medco merger means that ``the big three'' PBMs will now control 
benefits for 72% of all Americans. I believe this makes it much more 
important that we act decisively and pass this legislation.
  PBMs have engaged in practices that include: negotiating with drug 
manufacturers at the same time as employers and health plans to ensure 
they secure prescription drug plans that will benefit themselves, 
switching customers to higher priced plans and benefitting from both 
the rebate and higher payment without any benefit to the health plan 
provider and

[[Page E714]]

employer, and also repeatedly changing pharmacy audit rules which makes 
it more difficult to ensure compliance. Mr. Speaker, these are only a 
few of the issues that plague loosely regulated PBMs and the 
pharmaceutical industry. We must bring this to an end.
  H.R. 4215 will provide a greater level of transparency in PBM 
business practices, interactions with Medicare Part D, and other 
pharmaceutical stakeholders. It will increase regulation on PBMs, which 
are currently regulated in only a handful of states, and make certain 
that our Nation's pharmaceutical consumers are adequately protected. 
This should not be seen as a partisan issue, but rather, a quality of 
life issue that affects every single American.
  Mr. Speaker, let's act now to pass this legislation and put a stop to 
anti-competitive practices in the prescription drug market. Let's 
protect consumers from being forced to pay higher prices for their 
medication. Let's do our part to lower healthcare costs, and ensure the 
best care for our constituents.

                          ____________________