Tennessee employers are raising concerns with policies being considered in Washington they say would undermine business’ ability to sponsor high-quality and cost-effective prescription drug benefits for their employees.
In a recent letter to members of the state’s congressional delegation, nearly 20 employers urged Congress to oppose policies targeting Pharmacy Benefit Managers (PBMs) that would increase costs for businesses who sponsor health insurance for their employers and encouraged lawmakers to instead embrace a free market approach to health care.
The document warns members of Congress the proposals to impose substantial new government regulations on PBMs are designed by the pharmaceutical industry and will drive costs up for both employers and employees, while increasing profits for drug companies.
“Congress must continue to recognize the disastrous consequences of government intervention targeting pharmacy benefits that would increase costs for employers, taxpayers, and consumers, while boosting profits for Big Pharma — and reject these pharma-backed proposals if they resurface in the future,” the employers wrote, according to a source who was seen the letter.
The letter to Tennessee lawmakers came in advance of a key House Oversight Committee hearings on PBMs and the Big Pharma effort against them where employers will be looking to U.S. Representative Tim Burchett (R-TN-02), a member of the panel, to elevate employer concerns and stand up to the influence of big drug companies.
Tennessee employers have previously spoken up in The Tennessee Star about their concerns that legislation targeting pharmacy benefits will make it more difficult for them to offer benefits to their employees and their families.
“We need solutions that encourage cost reduction through increased competition and prioritize patient well-being, rather than policies that serve to benefit a few at the expense of the many,” Resolve Diagnostics CEO Wes Warrington said in a recent column.
The fight over PBMs over regulation has been in the news in Washington D.C. as Big Pharma has implemented a multi-million dollar push to use PBMs as a scapegoat to boost their own profits.
“Pharma-backed proposals to that would block, or ‘delink,’ pharmacy benefit companies from market-based incentives to maximize savings for plan sponsors, like employers, would impose disastrous costs on Tennessee businesses, while bailing out Big Pharma,” the Tennessee employers said.
Some political analysts say they believe Republicans siding with Big Pharma policies targeting PBMs could hurt their reelection chances.
“Advancing such legislation could hurt the chances of Republicans in the upcoming election cycle, others argued, with at least one GOP Senate campaign staffer pointing to internal polling that showed candidates dealing with drug prices was a top issue for voters heading into 2024. ‘Not a single Republican voter is asking the House to pass a PBM bill,” the staffer said. “This is driven by pharma lobbyists, it’s bad politics and policy, and it will hurt us next fall,’” The Washington Examiner reported.
PBMs help employers offer quality, affordable prescription drug benefits by providing them with the necessary flexibility and range of options to design the best plan possible for their unique needs.
“PBMs are a free-market solution that enhances competition through group purchasing and negotiated discounts that provide substantial economic and health benefits for consumers and taxpayers,” said Competitive Enterprise Institute Senior Fellow Joel Zinberg.
Tennessee employers asked the state’s Congressional delegation to support employers and job creators in the state by rejecting Big Pharma’s anti-competitive push.
“As Tennessee employers and business owners, we wish to reiterate our appreciation for Congress recently rejecting these misguided, pharma-backed proposals targeting pharmacy benefits. We are counting on your leadership to ensure these disastrous policies do not pass in the future,” the employer letter states.
