Pharmacy Middlemen Need Robust Oversight, States Tell GAO

State officials overseeing companies that manage prescription drug benefits say regulatory flexibility is essential to prevent industry practices that can fuel high patient costs, a federal watchdog review of five states found.

The Government Accountability Office said in a report published Monday that regulators in four states with laws regulating pharmacy benefit managers told the federal agency that “granting state agencies broad regulatory authority was more effective than specific statutory provisions to regulate PBMs.”

Doing so allowed regulators from at least one state to “address emerging issues without new legislation,” the GAO said based on its review of PBM laws ...