Drug Industry Middlemen Fees Targeted for Savings in Senate Plan

The Democratic and Republican heads of the influential Senate Finance Committee Thursday released a framework showcasing how they want to change how pharmaceutical industry middlemen operate.

Sens. Mike Crapo (R-Idaho) and Ron Wyden (D-Ore.) pointed to “misaligned incentives” for pharmaceutical benefit managers—namely that many reap higher fees when drug prices increase—and incomplete disclosure requirements as drivers of rising drug prices in the US.

The pair say they’re working to ensure seniors on Medicare in particular see the benefit of rebates that PBMs get for employers and health plans—including Medicare—in their negotiations with drugmakers.

“For years, drug pricing middlemen like pharmacy ...