HARRISBURG – A bipartisan bill which supports local pharmacies and increases the accountability of pharmacy benefit managers or PBMs was signed into law by the governor. House Bill 1993, now Act 77, provides stronger protections for patients in PA and increases regulatory oversight of PBMs. PBMs are the hidden “middlemen” of the pharmaceutical supply chain.They negotiate the price of prescription drugs between health insurance companies and drug manufacturers, set compensation formulas for pharmacy payments, and determine patient co-payments. Despite their influence in our healthcare system, many Pennsylvanians are unaware of their existence. The measure reforms the operations of PBMs to help those impacted by the rising costs of prescription drugs and bring price transparency into the pharmaceutical supply chain. It grants the PA Insurance Department the authority to regulate PBM practices and contains several important protections that will benefit Pennsylvanians, resulting in lower out-of-pocket costs for prescription medication.
