Why it matters: The article discusses the potential impact of the Modernizing and Ensuring PBM Accountability (MEPA) Act, a bipartisan bill aimed at reducing the cost of prescription drugs. The bill seeks to address the influence of pharmacy benefit managers (PBMs) and their role in driving up drug prices.
What they are saying: Senator Maggie Hassan and Senator Bob Menendez voted to advance the MEPA Act, which aims to break the link between drug prices and PBM compensation. The bill would ban the practice of “spread pricing” in Medicaid, require transparent reporting on pricing of low-cost generics, and make other adjustments to PBM practices.
The big picture: Rising drug prices and the influence of PBMs have been controversial issues in the healthcare industry. Drugmakers argue that increasing rebates paid to PBMs force them to raise drug prices. The MEPA Act aims to reduce these incentives and ensure that PBMs prioritize affordable medication options.
What to watch: The MEPA Act has passed the Finance Committee but still needs to be approved by the full Senate and House of Representatives. It will be important to monitor the progress of the bill and whether it receives support from both parties.
My take: The MEPA Act addresses concerns about rising drug prices and the role of PBMs in driving up costs. By breaking the link between drug prices and PBM compensation, the bill aims to incentivize the use of more affordable medications. This could potentially lead to lower prescription drug costs and benefit patients, particularly seniors who are often vulnerable to high healthcare expenses. However, it remains to be seen how effective the MEPA Act will be in practice and whether it will receive enough support to become law.
