Assemblymember Richard Gottfried (D-Chelsea, Midtown) released a statement criticizing Governor Andrew Cuomo (D) for vetoing his bill to increase oversight of pharmacy benefit managers (PBMs).
A PBM is a third-party company that manages prescription drug benefits for commercial and federal health plants. In the past few years, PBMs have become notorious among pharmacy customers for their lack of transparency. Some have been accused of engaging in “spread pricing”, a practice that has them profit on the difference between what they charge health plans and how they reimburse pharmacies.
Gottfried’s bill would have addressed these practices and mandated increased financial transparency.
“”The PBM industry spent a lot of money lobbying against this consumer protection bill,” said Gottfried. “PBMs are widely recognized as major players in driving up drug costs and profiteering at the expense of people who pay health insurance premiums, patients, and pharmacists. They’re a black box, operating in secret with no effective regulation.”
