Press Releases

Washington, D.C. – President Trump has signed into law H.R. 7148, a legislative package that includes House Budget Chairman Jodey Arrington’s (TX-19) Better Deals and Lower Prices Act. The new law delivers long-overdue transparency and accountability to pharmacy benefit managers (PBMs) and helps lower prescription drug costs for American businesses and working families.

“While America leads the world in medical innovation, our prescription drug delivery system has fundamental flaws that cost patients and taxpayers alike. This week, President Trump took a BIG step in addressing this by signing my Better Deals and Lower Prices Act into law.

“By increasing transparency around prescription drug pricing and pharmacy benefit manager practices, this new law empowers consumers with the information they need to make informed decisions, spurs much-needed competition into the health care market, and ensures taxpayer dollars are spent in the most cost-effective way.

“The result? Lower prices, lower premiums, and a system that works for both patients and taxpayers.

“I’m proud to have led on these commonsense reforms that will drive down health care costs and deliver better deals for hardworking American families.” - Chairman Arrington.

Background:

• Many companies do not have the resources to negotiate back and forth with drug manufacturers on the cost and quantity of the drugs they require for their employees.
• Traditionally, PBMs filled this function, and while companies don't have to contract with a PBM to develop their drug benefit, virtually all of them do.
• Over time, and due largely to a lack of oversight and transparency, the 3 Largest PBMs have grown to control 90% of the market - while patients and employers face mounting barriers to understanding how PBMs negotiate for them, and whether the deal they're getting is as good as they think.
• This means two things: 
  • Companies can't act as rational consumers and compare PBM net price data across the market, or "shop around," and 
  • Working Americans with employer sponsored insurance (roughly 160,000,000 of them) are paying higher premiums than they need to.
• The Better Deals and Lower Prices Act will address this by requiring PBMs to share net price data from all drugs regardless of class to employers that request it, allowing businesses small and large to access the same information and shop effectively.