A recent opinion from a supporter praised Sen. Dan Sullivan’s actions, which purportedly “preserve free enterprise and oppose government intervention.” I’m always immediately curious when those phrases are bandied about. The red flag for me is: Who benefits from this supposed ‘free enterprise,’ and who is getting away with what when there is to be no regulatory oversight?
The particular item of contention, the bipartisan Senate Bill 127, the Pharmacy Benefit Manager Transparency Act was misrepresented as being malicious overreach, and additionally, some kind of “reward’ for bad behavior. The claim was made that the legislation would pick “winners and losers.” (Oh my, another oft used slogan being bandied about.)
What does S127 do? It regulates pharmacy benefits management companies. The legislation would put a stop to deceptive and opaque pricing schemes that burden consumers with higher prices. The legislation would lower consumer drug prices, and the Congressional Budget Office studied the legislation and stated it would additionally save taxpayers some $740 million.
Through the practice of spread pricing and clawbacks, PBMs have driven up consumer prices, costing both consumers and taxpayers. This legislation would put a stop to those deceptive practices. The bill enjoys wide bipartisan support and has strong guardrails to ensure the Federal Trade Commission works within its existing authority. The bill does not permit the FTC to write regulations.
A broad array of stakeholders supports the legislation, the American Medical Association, the American Pharmacy Association and the National Community Pharmacy Association among the many. Primary sponsors are a Republican, Sen. Chuck Grassley, and a Democrat, Sen. Maria Cantwell. Seven of the nine Senate co-sponsors are also Republicans.
In review, this legislation gives support and tools for the FTC in its role as our anti-trust regulatory agency, and helps prevent shady business practices that cost taxpayers and consumers. Who are these “winners” that Sen. Sullivan and his supporter wish to protect by misrepresenting and undermining this legislation? If you agree with the many supporters of S127, shady business and deceptive practices deserve to be losers and shouldn’t be protected.
Tell your representatives to support Senate Bill 127.
— Paul Zimmerman
Kasilof
Have something on your mind? Send to letters@adn.com or click here to submit via any web browser. Letters under 200 words have the best chance of being published. Writers should disclose any personal or professional connections with the subjects of their letters. Letters are edited for accuracy, clarity and length.