The American Prospect: Biden Regulators Take Action on Hidden Pharma Monopolies

January 10, 2022 Media

The Centers for Medicare & Medicaid Services (CMS) has proposed a new rule that would attack one of the key tactics enriching the middlemen who keep prescription drug prices high and make it difficult for independent pharmacists to survive.

The rule could dent the profits of pharmacy benefit managers (PBMs), middlemen who negotiate prices between health plans and drug companies, and in the process use their knowledge advantage to skim off the top from virtually everybody.

“The new proposed rule from CMS addressing pharmacy DIR Fees is a bold move to rein in corporate power while lowering drug costs and helping small businesses compete on a level playing field,” said Zach Freed of the American Economic Liberties Project in a statement. Similarly, the National Community Pharmacists Association responded encouragingly to the proposed rule. “After many years and multiple administrations, this is as close as we’ve ever come to reforming pharmacy DIR fees,” said B. Douglas Hoey in a statement.