Dear Neighbors,
We’re in the final week of the legislative session, with a constitutional deadline to adjourn by Monday night at midnight. The House and Senate along with Governor Walz are working to come to an overall agreement on the state budget and conference committees for each area of the budget are continuing to work through aligning their bills. Here are a few updates from the week:
Reigning in Prescription Drug Costs
On Wednesday, a conference committee focused on improving the oversight of pharmacy benefit managers finished its work on a bill that takes bold action to reduce soaring prescription drug costs. The legislation would crack down on Pharmacy Benefit Managers (PBMs), which act as a “middle man” between drug manufacturers and pharmacies. Drug manufacturers give PBMs rebates to encourage the PBM to place their product on the formulary, with no guarantee that the rebate will be passed on to consumers. Higher rebates are an incentive for PBMs not to consider less expensive drugs, and they encourage companies to raise list prices. All of this raises the price of prescription drugs for Minnesotans.
The bill was passed by the Senate and the House on a bipartisan vote, and is headed to the Governor’s desk. Once enacted into law, the bill will improve transparency and accountability, and require PBMs to look out for the financial interests of their customers by seeking out deals that provide the lowest price. Continue reading “Rep. Zack Stephenson (HD36A) Update: May 17, 2019”