Opinion: Lawmakers must find ways to lower prescription drug costs
As the former Ohio Director of Health, I know how important it is to do everything in our power to bring down the cost of prescription drugs. And, as we recover from the COVID-19 pandemic, which has taken a significant toll on too many hardworking families across our state, access to affordable health care options is more critical than ever. Unfortunately, there are forces at work in our state that are trying to make health care more expensive for consumers and restrict access to quality care.
As lawmakers try to address the high cost of prescription drugs, they would be well advised to start at the source: big drug companies. That’s because, when push comes to shove, these companies are the ones who set the final price of prescription drugs. When drug companies raise prices, it is Ohio employers, taxpayers and patients who wind up footing the bill.
There has been much derision directed at pharmacy benefit managers, or PBMs, of late. While most people may not be familiar with PBMs, they play an important role in our health care system. PBMs are the one entity in the entire prescription drug delivery chain whose primary mission is to drive down drug prices. They do this by negotiating prices with drug manufacturers on behalf of their clients – major employers, labor unions and state governments. This collective power to negotiate makes prescription drugs more affordable. They are so effective that according to one study, if PBMs were eliminated, the average consumer could expect to pay an extra $962 per year for prescription drugs.
Yet, it seems not a week goes by that we do not read a headline exclaiming the need to reign in the greedy PBMs. "Grassroots" organizations appear from thin air to advocate PBM reform. "Experts" testify before legislative committees to educate lawmakers on how PBMs lack transparency and make exorbitant profits.
One thing I’ve learned from being around the political sphere for as long as I have is that these kind of coordinated "campaigns" don’t just happen by accident. I don’t know exactly who might be directing this attack on PBMs, but I do know that the prime beneficiary of undermining PBMs would clearly be the drug companies.
Prescription drug companies, who raise the price of prescription drugs year after year (and often even twice each year) know that PBMs are working as patient advocates to lower the cost of prescription drugs. They don’t want anything or anyone pushing them to offer greater savings to consumers, and with PBMs out of the way, they would have nothing stopping them.
Many years before I was director of health I also served in the legislature. I have a special appreciation for the urge many legislators feel to find quick and decisive solutions. But, I urge my former colleagues to be cautious and thoughtful. Are there ways to improve PBMs? Of course, there are. But, restricting PBMs’ abilities to negotiate for lower drug prices is not one of them.
As lawmakers consider ways to grow our economy and improve the lives of Ohioans, I strongly urge them to look for ways to truly lower prescription drug costs by making it harder for big drug companies to price-gouge consumers, taxpayers and job-creators. Their interests should always be to put the interests of people like you and me first.
Richard Hodges is the former director of the Ohio Department of Health and former member of the Ohio House of Representatives.
