Washington, D.C. — In advance of the Senate Finance Committee’s July 26th markup of the Modernizing and Ensuring PBM Accountability Act, the American Economic Liberties Project released the following statement.

“The Modernizing and Ensuring PBM Accountability Act seeks to address PBM abuse of patients and pharmacists across the country, but the current draft leaves the industry’s structural problems intact,” said Sara Sirota, Policy Analyst at the American Economic Liberties Project. “As it stands, the bill overlooks the lack of competition in the PBM industry, conflicts of interest with Big Insurers owning major PBMs and pharmacies, and corrupt kickbacks from Big Pharma. We urge the Senate to adopt amendments addressing these structural problems.”

“Specifically, Senator Warren’s amendment to break up PBMs and ban them from owning pharmacies is both groundbreaking and long overdue,” added Sirota. “This transformative policy would create a more balanced marketplace for independent pharmacists, patients, and government payers, and put other self-dealing industries on notice.”

“Other amendments offered by members of the Committee would also make this legislation more effective,” said Sirota. “We encourage the committee to support a proposal from Senators Cornyn, Carper, Tillis, and Brown to require Medicare Part D plans to calculate beneficiary cost-sharing based on net price for certain chronic conditions, a plan from Senator Grassley to augment enforcement of prompt pay rules, and another proposal from Senator Warren to prohibit drug manufacturers from making rebates contingent upon formulary placement.”

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.