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Legislation introduced to prohibit PBM clawbacks & pharmacist gag orders in Ohio

Rep. Scott Lipps discusses the need to address high drug pricesThe Ohio Pharmacists Association (OPA) applauds new legislation, HB 479, introduced by Representative Scott Lipps (R-Franklin) and Representative Thomas West (D-Canton) that aims to end a secretive practice that is causing patients to pay more than they should at the pharmacy counter.

As prescription drug prices continue to grow, 6 in 10 Americans say lowering the cost of prescription drugs should be a “top priority” for lawmakers. In Ohio,  despite the failure of the unworkable "Drug Price Relief Act" (Issue 2), a message was sent that something must be done to get drug pricing under control. OPA has worked extensively with Reps. Lipps & West to address out-of-pocket expenses for patients and to shed light on a problem that OPA members have said must be stopped.

First, HB 479, dubbed the "Prescription Drug Co-Pay Integrity Act," will prohibit the practice of pharmacy benefit managers (PBMs) requiring pharmacists to charge patients an amount greater than the pharmacy's cash price for a particular prescription drug. Second, the legislation would prohibit "gag clauses" that some PBMs place in pharmacy contracts that penalize pharmacists for disclosing a complete picture of the financials of a patient's prescription drug transaction.

This issue has received significant attention in the media recently, and it all started with a 2016 investigative report from a news station in New Orleans. Similar legislation has already been passed in more than a dozen states. The practice has resulted in more than 16 lawsuits across the country.

Rep. Thomas West describes what a PBM clawback isTo mark the roll-out of HB 479, OPA stood alongside Reps. Lipps & West, and Holly Pendell, director of advocacy and activist engagement for the National Multiple Sclerosis (MS) Society, to announce the bill's introduction. To view that press conference in its entirety, see the Ohio Channel's video HERE.

It's no secret that OPA has been very outspoken about the problems with prescription drug pricing (see hereherehere, and here). We've spent a great deal of time working to reform a broken system that rewards big supply chain middlemen and results in higher drug costs for employers, taxpayers, and patients. HB 479 is just one attempt at ensuring that patients aren't paying any more than they have to for their needed medications.

"The clawback is just the latest example of PBM tactics that deceive patients, inflate the cost of prescription drugs, and line the pockets of administrative middlemen," said OPA Director of Government & Public Affairs Antonio Ciaccia. "It's time to reclaim the idea that a co-pay is a shared payment; not an imposed overpayment."

OPA thanks Representatives Scott Lipps & Thomas West for taking the lead on lowering out-of-pocket expenses for patients. Additional thanks to Representatives Jim ButlerRyan SmithNino VitaleGary SchererDick SteinScott WiggamSteve HambleyMichelle Lepore-HaganGlenn HolmesMike Ashford, and Kyle Koehler for signing on as lead co-sponsors.

The legislation is already attracting supporters from across the industry, and our "Ohio Prescription Partnership" coalition continues to grow. Here is a list of the current supporters of the legislation:

Academy of Medicine of Cleveland & Northern Ohio (AMCNO)

Alliance for Transparent & Affordable Prescriptions (ATAP)

American College of Rheumatology (ACR)

Arthritis Foundation

Cancer Support Community of Central Ohio (CSCCO)

Cleveland Clinic

Coalition of State Rheumatology Organizations (CSRO)

Epilepsy Foundation Greater Dayton Region

Genoa Healthcare

Global Healthy Living Foundation (GHLF)

Immune Deficiency Foundation (IDF)

Independent Pharmacy Cooperative (IPC)

National Alliance on Mental Illness Ohio (NAMI Ohio)

National Community Pharmacists Association (NCPA)

National Multiple Sclerosis Society (NMSS)

National Psoriasis Foundation (NPF)

Ohio Academy of Family Physicians (OAFP)

Ohio Association of Ambulatory Surgery Centers (OAASC)

Ohio Association of Rheumatology (OAR)

Ohio Bleeding Disorders Council (OBDC)

Ohio Chapter of the National Association of Pediatric Nurse Practitioners (Ohio NAPNAP)

Ohio Dermatological Association (ODA)

Ohio Foot & Ankle Medical Association (OHFAMA)

Ohio Hematology Oncology Society (OHOS)

Ohio Osteopathic Association (OOA)

Ohio Pharmacists Association (OPA)

Ohio State Medical Association (OSMA)

Ohio State University (OSU) Wexner Medical Center

Patients for Affordable Drugs

U.S. Pain Foundation

Universal Health Care Action Network of Ohio (UHCAN Ohio)

For more information and resources on HB 479, PBM clawbacks, and pharmacist gag orders, review the links below:

Ohio bans ‘gag orders’ on cheaper cash prices for prescriptions - Columbus Dispatch, 4/4/18

Consumers could save on prescriptions after Ohio bans ‘gag orders’ - Dayton Daily News, 4/4/18

Ohio regulator orders insurers, benefit managers to give lowest drug price - Reuters, 4/4/18

Lawmakers consider bill to allow pharmacists to warn customers of overcharges - NBC4i Columbus, 3/23/18

Bill targeting pharmacy benefit managers gets first hearing in Ohio House - Columbus Dispatch, 3/20/18

OPA Executive Director Ernie Boyd on paying cash for your med's versus using insurance - 610 WTVN, 3/18/18

Regulators take aim at companies blamed for higher prescription drug prices - Akron Beacon Journal, 3/18/18 *OPA Executive Director Ernie Boyd quoted

USC study explores the 'copay clawback' phenomenon - University of Southern California, 3/13/18

Holly Pendell: Ohio House bill aligns drug prices with cost - Columbus Dispatch, 3/8/18

Why your pharmacist can’t tell you that $20 prescription could cost only $8 - The New York Times, 2/24/18

Trending now: State legislation that bans pharmacy benefit managers’ “gag clauses” - National Academy for State Health Policy, 1/30/18

Canton-area lawmaker targets pharmacy clawbacks - WOIO 19 Cleveland, 1/25/18

New bill calls for more transparency in drug prices - Dayton Daily News, 1/25/18 *OPA member Doug Anderson quoted

Ohio lawmakers going after pharmacy benefit managers - Columbus Dispatch, 1/24/18 *OPA government affairs director Antonio Ciaccia quoted

Effort to lower drug costs would allow pharmacists to tell about cheaper options - WSYX/ABC6 Columbus, 1/24/18 *OPA government affairs director Antonio Ciaccia interviewed

Ohio lawmakers consider new legislation to reduce drug prices - Statehouse News Bureau, 1/24/18

Press conference - Discussing prescription drug legislation - The Ohio Channels, 1/24/18 *OPA government affairs director Antonio Ciaccia lays out the association's case for HB 479

Reps. Lipps, West discuss newly introduced legislation regarding prescription drug affordability - Ohio House of Representatives Majority Caucus Blog, 1/24/18

OPAs Antonio Ciaccia gives examples of PBM clawbacksPrescription drugs may cost more with insurance than without it - The New York Times, 12/9/17

NBC News Investigation: Prescriptions may be cheaper without insurance - NBC News, 10/16/17

Time to lift the curtain on PBM wheeling and dealing - Managed Care Magazine, 9/29/17

Study finds Medicare 'DIR fee' legislation would save government billions - National Community Pharmacists Association, 9/28/17

Want to bring down drug prices? Go after the middleman - The American Prospect, 8/11/17

A startling lawsuit against CVS could blow up what you thought you knew about drug prices - Business Insider, 8/8/17

The 'clawback': Another hidden scam driving up your prescription prices - Los Angeles Times, 8/9/17

Pharmacy ‘clawbacks’ targeted in latest state law aimed at PBMs - Bloomberg News, 7/11/17

The hidden monopolies that raise drug prices - The American Prospect, 3/28/17

You’re overpaying for drugs and your pharmacist can’t tell you - Bloomberg News, 2/24/17

Sticker shock at the pharmacy? There's more than meets the eye - Antonio Ciaccia via Cleveland Plain Dealer, 12/11/16

Middlemen drive up prescription drug prices, critics say - Columbus Dispatch, 10/23/16 *OPA government affairs director Antonio Ciaccia quoted

Uncovering the group driving up the cost of medication - 10TV Columbus, 7/19/16 *OPA Past President Ray Carlson and anonymous OPA members interviewed

Filling a prescription? You might be better off paying cash - Kaiser Health News, 6/24/16

The great big prescription drug clawback - National Community Pharmacists Association, 5/20/16

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