Spurring competition in Rx market, protecting free market

I wholeheartedly believe in and recognize the importance of strengthening our economy, and the first step to doing so is actively supporting and investing in communities throughout our state.

Eliminating or restricting access to the resources Mississippians rely on to improve their quality of life is counterintuitive to this mission, which is why I am growing increasingly concerned about the current attack on pharmacy benefit companies from the federal level and what it ultimately means for our free market.

It’s no secret that America’s health care industry is both dauntingly complex and increasingly expensive. Free market entities like pharmacy benefit companies are essential in providing a check on Big Pharma, working to lower the exorbitantly high prices of prescription drugs and allowing families across our state to keep themselves and their loved ones happy and healthy at a fraction of the cost.

Unfortunately, some of our leaders in Washington are attempting to impose overly strict regulations on these companies and limit their ability to help lower medication costs. Proponents of these pieces of legislation claim these measures will help “solve” the drug pricing crisis when, in reality, they’re merely pushing the Left’s political agenda at taxpayers’ expense.

Pharmacy benefit companies provide much-needed healthy competition in a market that tends to be dominated by out-of-control pharmaceutical giants.

They also help to negotiate rebates with these massive drug companies on behalf of plan sponsors and patients. Contrary to common misconceptions being pushed by Big Pharma, rebates have no correlation to the drug prices we see, which are set only by pharmaceutical companies.

In fact, drugs with the highest price hikes often lack rebates entirely. These savings are vital for reducing premiums or enhancing the benefits for employees covered by health plans.

If these proposed regulations gain traction, they will not only stifle competition in the market, but would also represent unnecessary government intervention in yet another industry.

One particularly alarming proposal we’ve seen enter the discussion in Washington seeks to eliminate performance-based incentives for pharmacy benefit companies when they negotiate rebates, despite evidence suggesting that such incentives result in significant savings for patients.

Banning these incentives could lead to a substantial increase in health care premiums of up to $26.6 billion annually, placing additional financial strain on Mississippi residents who are already struggling to afford their medications and health care services.

Another proposal would require pharmacy benefit companies to pass through 100 percent of rebates, which is already a choice many health plan sponsors have. More options are better — we don’t need the government making decisions for us.

In light of these potential consequences, it is imperative that policymakers take a balanced approach to addressing concerns about pharmacy benefit companies. While oversight and accountability are essential, increasing regulatory red tape for these companies would have negative consequences that harm the very individuals they aim to protect and increase costs.

Despite the ongoing debate surrounding pharmacy benefit companies, it is essential to recognize the valuable role they play in our health care system. Rather than imposing restrictive regulations that could stifle innovation and drive-up costs, policymakers should work to promote more competition — not less — in the pharmaceutical industry, rather than letting Big Pharma shut out the competition and keep prices high for American families struggling to afford the medications they need.

By supporting policies that empower pharmacy benefit companies to negotiate lower drug prices and improve access to affordable medication, we can ensure that all Mississippians have access to the health care services they need to thrive.

Mike Armour is a conservative political activist and the former Mississippi state director for the Appalachian Regional Commission.

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