In September, Governor Dunleavy signed into law a House Bill that places Pharmacy Benefits Managers (PBMs) under tighter regulation. House Bill 226 limits PBMs’ ability in Alaska to force patients to get their prescriptions filled at the PBMs’ pharmacies of choice. That is, PBMs currently often steer profitable prescriptions away from independent and tribal pharmacies in favor of mail order and big box pharmacies that they themselves own- creating a clear conflict of interest. Additionally, PBMs employ extremely opaque business practices that drive prescription drug prices up for consumers and employers. House Bill 226 creates transparency requirements that will help address some of the problematic business practices of PBMs. During the Legislative presentations on the bill this year, representatives from Tanana Chiefs Conference (TCC) highlighted that the bill would mitigate the requirement for rural Alaskan residents to order prescriptions from by-mail pharmacy services, which frequently results in delayed medication deliveries and frozen medications in those areas.
“We are incredibly proud of all of the hard work from the dedicated team of advocates that were able to get meaningful legislative reform of PBMs across the finish line in Alaska,” says Daniel Nelson, TCC’s Pharmacy Director. “This bill is the first step in bringing much needed transparency, a level playing field and more reasonable prescription costs to the employers and residents of the state of Alaska.”
TCC partnered with Senator Cathy Giessel, Representative Jesse Sumner, the Alaska Pharmacy Association, the Alaska Native Health Board and various other individuals and organizations from around the state and nation to get House Bill 226 passed.
“This is a step forward in promoting the best interests of patients, pharmacies, and pharmacists in Alaska,” said Representative Sumner, “By enacting this legislation, we strive to create an environment that fosters quality pharmaceutical care, empowers patient choice, and enhances the overall integrity of pharmacy services in our state.”
PBMs are the key stakeholders in negotiating drug prices, acting as “middlemen” between drug manufacturers and insurers. Recently, the Federal Trade Commission (FTC) initiated a probe on PBMs for lack of transparency regarding their process for establishing drug prices, and how much of a “rebate” PBMs retain from drug manufacturers as excess profit as opposed to being passed through to insurers and consumers.
“The PBMs wield enormous power and influence over patients’ access to drugs and the prices they pay. This can have dire consequences for Americans, with nearly three in ten surveyed reporting rationing or even skipping doses on their prescribed medications due to high costs,” the FTC said.
TCC would like to thank everyone who worked on getting this legislation passed for our people and for all of Alaska’s people.
