Legislators revive bill on drug-price transparency

Two state legislators are moving quickly to take care of unfinished business in state efforts to crack down on the costly practices of pharmacy benefit managers.

Reps. Scott Lipps, R-franklin, and Thomas E. West, D-canton, have reintroduced legislation aimed at lowering prescription drug costs by increasing price transparency for both consumers and pharmacists.

The House passed the legislation unanimously last year, but after receiving an initial hearing in December, it failed to clear the Senate before the two-year session ended Dec. 31.

Legislators’ efforts to rein in pharmacy benefit managers, or PBMS, come a week after Gov. Mike Dewine ordered the Department of Medicaid to rebid contracts with managed care companies that hire PBMS to negotiate drug prices with manufacturers and rates paid to pharmacists to fill prescriptions.

Lipps and West’s bill would make permanent in state law the regulations imposed on PBMS last year by the Insurance Department. Specifically, the bill would prohibit PBMS from directing pharmacists to charge patients more than the price of a drug without insurance, and ban “gag rules” that prevent pharmacists from telling their customers about cheaper options for buying medication, such as paying out of pocket.

Sen. Dave Burke, R-marysville, said the Senate ran out of time to consider the legislation last session, but as a pharmacist, he is well aware of the problem.

“I just had one the other day, $30-something was the cash price, and insurance wanted to charge more than $100 for a generic medication,” he said. “I was stunned. I’ve never seen one so blatant.”

Burke said his customer opted to pay out of pocket.