Congressional scrutiny of the prescription drug industry, which included hearings earlier this year on the 340B Drug Pricing Program and anticompetitive practices, continued last week with an examination of the role pharmacy benefit managers (PBMs) play in the drug market.
At a House Committee on Oversight and Accountability hearing last week on PBMs, lawmakers raised concerns that the three largest PBMs control 80 percent of prescription drugs dispensed nationally and alleged that their anticompetitive tactics worsen patient outcomes. Witnesses, including executives from the largest PBMs, argued that manufactures’ inflated list prices drive high drug costs and that patent system abuses delay the entry of biosimilar and generic competition.
Last week’s hearing demonstrated Congress’ continuing appetite to investigate drug pricing and lower prescription costs. In June, the House Committee on Energy and Commerce Subcommittee on Oversight and Investigations held a hearing, “Oversight of 340B Drug Pricing Program.” In May, the Senate Committee on the Judiciary met for a hearing, “Ensuring Affordable & Accessible Medications: Examining Competition in the Prescription Drug Market.”
America’s Essential Hospitals is closely monitoring Congress’ scrutiny of the prescription drug industry and is prepared to respond to legislative threats to the 340B program, should any arise.
Committee Activity This Week
The Senate will be in session Monday through Friday this week, while the House has departed for August recess a week early. Both chambers will be out of session all of August and will reconvene the second week of September.
The Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Economic Policy will meet July 30, at 2:30 pm ET, for a hearing, “Banning Noncompete Agreements: Benefits for Workers, Businesses, and the Economy.”
The Senate Committee on Health, Education, Labor, and Pensions will hold an executive session July 31, at 10 am ET, to consider the Older Americans Act Reauthorization Act, the Autism CARES Act, and the Traumatic Brain Injury Program Reauthorization Act.
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