This is a guest opinion column
During campaign season, most state legislatures are out of session, allowing our elected leaders to meet with their constituents and conduct their re-election campaigns. Meanwhile, back at the statehouse, staff can plan for next year’s legislative session, meeting with business leaders and other interested parties to get a jump on the new year. Frequently, these “unofficial” gatherings are where the real work gets done.
Such was the case recently in Montgomery, where an “unofficial” legislative study group met in late August to discuss prescription drug costs. Some feathers were ruffled by those not on the invite list, of course, but you can guarantee that the interests of the big pharmaceutical companies were well-represented. That is terrible news for all Alabamans.
Big Pharma casts a wide net to protect its bottom line, both in Alabama and at the national level. No meeting is too small or legislator too unimportant for them to engage, knowing that their relentless efforts—and generous campaign donations—will get them the access they need. All this work is done for one reason – to increase their profits.
One constant thorn in Big Pharma’s side has been Pharmacy Benefit Managers (PBMs), entities contracted by businesses of all sizes to negotiate lower drug prices. PBMs use bulk pricing discounts on behalf of multiple employers to force drug companies to lower prescription drug costs for their clients, including the health plan that my business employs.
However, lower prices are just one benefit that PBMs offer. PBMs also create and empower retail pharmacy networks, help my employees maximize prescription drug benefits, develop lists of covered medications, and our process all pharmacy claims. These critical healthcare intermediaries are a one-stop shop, simplifying a confusing and time-consuming process.
The leverage PBMs have produce actual savings for the consumer and helps small businessmen like me offer my employees a broader package of benefits. Significant studies, including one by the U.S. Government Accountability Office, have confirmed the value of PBMs in saving money on needed prescription drugs. Some estimates predict PBMs will save consumers hundreds of billions of dollars over the next decade. With the cost of healthcare spiraling out of control, that is real money.
Of course, with that type of money on the line, Big Pharma is working hands in glove with our lawmakers to eliminate PBMs. The drug companies are fanning out to our state capital and to our congressional representatives’ offices in Washington, D.C., to protect and enhance their profits.
That is why the Alabama statehouse introduced HB 238 in February. This bill, strongly supported by Big Pharma, would have imposed burdensome regulations on the operation of PBMs in Alabama, including an absurd $10 tax per prescription filled, which would cause prices to rise and businesses like mine to have no choice but to cut employee benefits.
Commendably, the statehouse rejected this bill. It knew that it was nothing more than an effort to help Big Pharma laugh all the way to the bank at our expense. But with the legislative sponsor of the legislation participating in last month’s healthcare legislative study group, it’s likely that the bill will make a comeback next year.
We can’t have this. Healthcare is a concern for all Alabamans. Forbes ranked the Yellowhammer State as having the second-worst healthcare system in the country. Keeping costs competitive should be a greater priority than trying to increase drug company profits.
With so much at stake for the future of our state, our elected leaders need to tell Big Pharma to stand aside and ensure that the voices of those who want to keep healthcare affordable are heard loud and clear.
As the famous saying goes, “if you’re not at the table, then you’re on the menu.” Holding down the cost of prescription medication should be at the table, not on the menu for Big Pharma to feast on.
Frank Granberry is owner and operator of Granberry Farms, located in Henry County, Alabama.
