Bipartisan Bill Targets Pharmacy Benefit Manager Consolidation

Proposed legislation aims to reduce prescription drug costs by requiring PBMs to divest from pharmacies within three years.

A bipartisan group of lawmakers introduced a bill to force pharmacy benefit managers (PBMs) to separate from their pharmacy businesses, citing conflicts of interest and rising drug costs.
The legislation, led by Senators Elizabeth Warren and Josh Hawley, seeks to address market consolidation by requiring PBMs owned by insurers to divest from their pharmacy operations.
The three largest PBMs—Caremark, Express Scripts, and OptumRx—control 80% of U.S. prescriptions and are criticized for steering business to their own pharmacies, raising costs for patients and independent pharmacies.
The Federal Trade Commission has previously criticized PBMs for practices like retaining drug rebates and inflating list prices, which disproportionately affect uninsured and high-deductible patients.
While the bill has support from independent pharmacies and pharmaceutical companies, its future remains uncertain due to intense industry lobbying and the approaching end of the congressional session.