House Oversight grills PBMs

We’re back with a recap of yesterday’s House Oversight hearing with the three largest PBMs, what BIO’s saying about the Farm Bill, and more. (730 words, 3 minutes, 39 seconds)

House Oversight grills PBM executives

Yesterday, the heads of the three largest pharmacy benefit managers (PBMs) faced the House Oversight and Accountability Committee, whose new report found “PBMs inflate prescription drug costs and interfere with patient care for their own financial benefit.”

Why it matters: “The three largest PBMs have used their position as middlemen and integration with health insurers, pharmacies, providers, and recently manufacturers, to enact anticompetitive policies and protect their bottom line,” said the Oversight Committee’s report, released yesterday.

The witnesses: Adam Kautzner, PharmD, President of Evernorth Care Management & Express Scripts; David Joyner, President of CVS Caremark and Executive Vice President of CVS Health; and Patrick Conway, MD, CEO of OptumRx. Together, the three PBMs process approximately 80% of all prescriptions in the U.S.

The problem of markups: Joyner claimed CVS Caremark’s TrueCost gives the lowest prices, but Rep. Jake Auchincloss (D-MA) cited several examples of huge markups—including Teriflunomide, a multiple sclerosis treatment priced at $6,000 by CVS Caremark TrueCost, even though Medicaid’s National Average Drug Acquisition Cost price is $16.

The problem of vertical integration: Committee Chair James Comer (R-KY) said PBMs should not own pharmacies or be owned by insurers. Rep. Buddy Carter (R-GA) noted PBMs help their own pharmacies, harming independents, and called their practices “despicable.”

The key takeaway: “These self-benefitting pricing tactics pushed by PBMs have done nothing but jeopardize patient care, undermine local pharmacies, and raise prescription drug prices,” said a statement from Committee Chair James Comer (R-KY). “The three largest pharmacy benefit managers colluded to line their own pockets.”

What’s next: Both the report and bipartisan remarks during the hearing called for PBM reform legislation.

Read more at Bio.News.

BIO joins coalition urging Farm Bill’s passage

Congress urgently needs to pass a Farm Bill, says a letter to congressional leaders sent Monday by a coalition of more than 530 organizations, including BIO.

Where we stand: The Farm Bill, which usually runs for five years, expired in 2023 and was extended through Sept. 30. A new full bill would incentivize biotech that enables sustainable solutions for food security.

Why it matters: “Millions of Americans rely daily on the provisions of the farm bill to produce food, fiber and fuel; to feed their families and others around the world; to voluntarily conserve fish and wildlife and their habitat; to provide sustainable solutions for clean air and water; to provide a producer safety net; to facilitate international trade; to create local jobs and robust economies; and to support rural development nationwide,” says the letter.

Who it matters to: The signatories, members of the Farm Bill For America’s Families coalition, say they “represent a diverse array of farm bill stakeholders encompassing agriculture, nutrition, conservation, environmental, rural development and many other sectors.”

BIO’s view: “By including provisions that advance biotechnology innovation in the Farm Bill, we as a country commit to advancing science-based solutions that help us feed and fuel our world while protecting the environment,” according to John Torres, BIO Senior Director of Federal Government Relations, Agriculture & Environment.

What’s next: The House Agriculture Committee has approved a Farm Bill, which must pass the full House and Senate. “Therefore, we respectfully and strongly urge you to craft a bipartisan farm bill that can pass your respective chambers and be conferenced and enacted in this Congress,” says the letter.

What Else to Know This Week

“This is really the dawn of a golden age of medicine. And so how do we screw it up?”asked BIO President & CEO John F. Crowley on the Andreessen Horowitz Raising Health podcast. Crowley spoke with Jorge Conde, general partner at a16z Bio + Health about his experience as a biotech founder and his priorities for BIO. “We can screw it up by getting in our own way, by developing policies and laws some of which are just wrong and that slow both innovation and access,” he continued. “And that's where I think the greatest challenge lies broadly, in making sure that we get out of our own way and we facilitate both innovation and access, and do it with a patient-centered mindset.” Listen to the whole thing here.

Need another reason to get your flu shot? It can reduce your risk of heart attack, found researchers in the Netherlands. The study found influenza can increase the risk of short-term heart attack, especially in patients with no history of heart disease. Read more at Bio.News.

Beltway Report: What's Ahead in Washington

President Biden scheduled an address to the nation from the Oval Office today at 8 pm ET, to discuss his decision to not run for office again, per AP.