Connecticut Enacts Law to Stop PBM ClawbacksJuly 12, 2017 

This Monday, July 10th, Connecticut Governor Dan Malloy signed a bill to close an important drug price loophole and stop an abusive practice by pharmacy benefit managers (PBMs) known as clawbacks. The bill allows pharmacists to tell patients about the cheapest ways to pay for prescription drugs they pick up at the pharmacy.  PBMs often use their power to negotiate contracts with pharmacists that prohibit drugstores from telling their patients about cheaper prices. A ‘clawback’ is when patients go and get drugs from the pharmacies and hand over co-pays set by their PBMs that are higher than the actual cost of the drug. Most patients are unaware that there are cheaper cash prices. This bill bans two anti-consumer practices: gag clauses that prohibit pharmacies from disclosing relevant drug price information to consumers, and contract provisions that lead to consumers unknowingly paying higher out-of-pocket prices for prescription drugs than the drugs actually cost. As we previously mentioned, the bill had overwhelming support in the Connecticut legislature. State leaders rebuked Insurance Commissioner Katherine Wade for attempting to reduce the bill’s impact. The Governor expressed reservations about the bill and said that he hoped for a different approach, but he ultimately signed the bill. This means Connecticut has joined Louisiana, Georgia, Maine, and North Dakota in passing laws that regulate PBMs and stop clawbacks.  Several major lawsuits have been filed against PBMs over clawbacks. The plaintiffs say that the PBMs defrauded consumers and violated insurance laws. Theoretically PBMs are supposed to negotiate lower drug prices, but in reality they did not and instead conspired to increase prices.  Five states have now enacted laws to regulate PBMs and prevent this practice. Legislators in several other states have introduced similar bills. We encourage legislatures all over the country to pass them, and to support further laws ensuring that PBMs actually lower drug prices and do not abuse their power. Congress Bans Gag-Clauses on PharmacistsSeptember 27, 2018The Promise of BiosimilarsDecember 11, 2017United States-Mexico-Canada Agreement (USMCA)October 5, 2018Consumer Groups and Unions Submit Letter in Support of PBM Bill Lowering Drug PricesDecember 17, 2019House of Representatives Passes Bill Allowing Medicare to Negotiate For Lower Drug PricesDecember 13, 2019Panel Examines Patent Abuse and How It Contributes to Rising Drug PricesDecember 10, 2019Massachusetts Senate Passes Bill to Regulate PBMsDecember 4, 2019FTC Approves Bristol-Myers Squibb and Celgene Merger, Two FTC Commissioners Issue Strong DissentsNovember 18, 2019Legal Challenges to State PBM LawsNovember 17, 2019American College of Physicians Calls for Transparency From Pharmacy Benefit ManagersNovember 14, 2019New Report Finds That Employers Are Increasingly Making Employees Pay Higher Prices for DrugsNovember 14, 2019At Axios Forum, Secretaries and Legislators Push for Measures to Lower Drug PricesNovember 13, 2019Department of Health and Human Services Sues Gilead for Patent Infringement and Ripping Off TaxpayersNovember 9, 2019December 2019 (4)November 2019 (7)October 2019 (6)September 2019 (8)August 2019 (5)July 2019 (10)June 2019 (8)May 2019 (10)April 2019 (10)March 2019 (6)February 2019 (12)January 2019 (11)December 2018 (5)November 2018 (6)October 2018 (8)September 2018 (4)July 2018 (1)January 2018 (1)December 2017 (4)November 2017 (6)October 2017 (8)September 2017 (13)August 2017 (10)July 2017 (8)June 2017 (14)May 2017 (11)April 2017 (4)March 2017 (10)February 2017 (4)January 2017 (3)December 2016 (17)November 2016 (10)October 2016 (4)September 2016 (2)August 2016 (8)July 2016 (12)June 2016 (11)May 2016 (10)April 2016 (6)March 2016 (9)February 2016 (4)January 2016 (5)December 2015 (3)October 2015 (4)ConsumersDOJInsurance CommissionersLuxotticaattorney generalhealth insurancehealth insurance competitionhealth insurance mergershow do I file a complaint?how do insurance mergers workmerger processmerger reviewmergerssize of Aetna Humana mergersize of Anthem and Cigna mergerstate impacttimeline for mergers