River Bend Times

U.S. Representative Mariannette Miller-Meeks, M.D. (R-IA) has introduced the Delinking Revenue from Unfair Gouging (DRUG) Act in an effort to regulate Pharmacy Benefit Managers (PBMs) within the commercial insurance market. This bipartisan legislation is supported by Reps. Nannette Barragan (D-CA), Nicole Malliotakis (R-NY), Brad Schneider (D-IL), Rick Allen (R-GA), and Donald Norcross (D-NJ).

The DRUG Act aims to enforce de-linking policies that require PBMs to charge a flat fee for drug placement instead of taking a percentage of the drug price. The current system incentivizes PBMs to promote higher-priced drugs, affecting patients financially.

"Pharmacy benefit managers have excessive influence over the prices patients pay at the pharmacy counter," stated Miller-Meeks, highlighting how local Iowa pharmacies are closing due to PBM practices, impacting access to medications for Iowans.

Rep. Barragán commented on the financial burden high prescription costs place on Americans, especially low-income individuals and seniors: "This broken system disproportionately harms those who rely on life-saving prescriptions." She expressed pride in joining Rep. Miller-Meeks in reintroducing this reform.

Rep. Malliotakis noted transparency issues with PBMs and their impact on small pharmacies: "Because of this, ‘Mom & Pop’ pharmacies in my district are being crushed."

Rep. Schneider shared concerns about constituents rationing medicines due to costs: "We need to fix the broken incentive structures that irrationally reward PBMs for prioritizing costly drugs."

Rep. Allen emphasized how rural pharmacies suffer under current PBM models: "The DRUG Act puts an end to manipulative payment models—saving taxpayers billions."

Finally, Rep. Norcross highlighted public demand for affordable healthcare: "Families...are crying out for relief from high prescription drug prices."

Charles Crain of the National Association of Manufacturers praised the bill's potential impact: “Manufacturers commend Rep. Miller-Meeks and her colleagues for re-introducing the DRUG Act.”

In December 2024, during a bipartisan press conference, urgent action was called upon regarding PBM reform by Miller-Meeks and Iowa pharmacist John Nicholson.

PBMs play a significant role between pharmaceutical companies and pharmacies but have evolved into entities controlling over 80% of prescriptions today through practices like spread pricing which adds opacity rather than transparency in healthcare costs.