Transparency for Pharmacy Benefit Managers
INTERIM COMMITTEE TO STUDY ISSUES RELATED TO PINNACOL ASSURANCE
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10:32 AM -- Transparency for Pharmacy Benefit Managers
Brad Young, the Governmental Affairs Director for RxPlus testified about transparency in pharmacy benefits. He handed out an article from Wall Street Journal on Disclosure on Drug Prices. (Attachment D) He also made a presentation about pharmacy-benefit managers (PBM) and their function in prescription drug plans. (Attachment E) He expressed concerns about transparency for PBM transactions. He distributed a bill that passed in Texas, SB 704, that creates a right to audit. (Attachment F) He also distributed a State of Texas Audit Report on PBM contracts (Attachment G).
Senator Mitchell asked about how Pinnacol handles their benefits. Mr. Young noted that the state has some ability to require things with Pinnacol.
Mr. Ross noted that the Texas bill only applies to state agencies, and that private industry is not included. It also refers to health care not workers' compensation. Mr. Young is advocating for something like this for Colorado state agencies and Pinnacol. He is not familiar with how Pinnacol manages pharmacy care for injured workers or what percentage of prescriptions are for workers' compensation. Mr. Ross explained that Pinnacol contracts with ExpressScripts and offered his opinion that the system works well.
Senator Carroll asked what could be earned from more transparency. Mr. Young stated that it would provide transparency about different sources of revenue, conflicts of interest.