Washington, D.C. (July 25, 2023) – Soaring drug prices are crippling the budgets of average Americans, businesses and government.
The Alliance of Community Health Plans (ACHP) commends Senate Finance Committee Chairman Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID) for their leadership to reform one key element in the drug supply chain: pharmacy benefit managers, known as PBMs. ACHP supports the Committee’s bipartisan efforts to increase PBM transparency, as well as modernize the industry’s revenue models.
“For too long, drug pricing in America has resembled a Ponzi scheme,” remarked Ceci Connolly, ACHP President and CEO. “This legislation targets appropriate entities, including PBM affiliates, addresses concerns within the broker and consultant process and moves the industry toward a cost-plus model. ACHP looks forward to working with the Senate Finance Committee to move this legislation forward and reduce the pain consumers are feeling in their pocketbooks.”
Additionally, ACHP supports the Committee’s work to delink PBM compensation from the cost of the drug. This change will curtail perverse incentives that frequently drive drug costs higher.
ACHP looks forward to working with the Committee to build upon this text to ensure a more transparent and competitive PBM market that will empower nonprofit, regional health plans to lower prescription drug costs on behalf of the patients we serve.
The Alliance of Community Health Plans (ACHP) represents the nation’s top-performing nonprofit health companies, which serve tens of millions of Americans across nearly 40 states and D.C. ACHP member plans collaborate with providers on high-quality coverage and care — leading the industry in practical reforms.
ACHP is the voice of a unique payer-provider partnership model advancing proven solutions that deliver better value for patients, employers and taxpayers. Contact us for case studies and data about member innovations and results.