States are suing pharmacy benefit managers to reduce drug prices, as legislation has been difficult due to strong lobbying, with some experts believing lawsuits can expose harmful practices but may not be as effective as new laws.
States Turn to Lawsuits Against PBMs in Battle to Lower Soaring Drug Prices
According to Stateline, as drug prices keep rising, some states are suing companies that manage prescription drugs, known as pharmacy benefit managers (PBMs), to lower costs. After a report from the Federal Trade Commission (FTC) accused PBMs of raising drug prices and limiting access to medications, Vermont sued companies like CVS and Evernorth Health Services. The lawsuit claims that PBMs are making drugs more expensive and harder to get for patients in Vermont.
These lawsuits are happening because states are finding it hard to pass new laws to control PBMs due to strong lobbying by these companies. By going to court, states hope to stop PBMs from blocking regulations that could help lower drug costs. Legal experts think these lawsuits can reveal harmful practices by PBMs and push lawmakers to create new rules.
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$50 Billion Drug Price Crisis: States Turn to Lawsuits Against PBMs to Lower Costs (PHOTO: ABC News – The Walt Disney Company)
Lawsuits vs. Legislation: Experts Debate Most Effective Way to Tackle Rising Drug Prices
Some people, like former Cigna executive Ron Howrigon, believe that while lawsuits can help, they may not be as effective as new laws in making lasting changes. However, others think that the information and attention from these lawsuits could help bring about important changes in how drug prices are controlled.
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