Drug price transparency could return as top legislative issue - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
October 12, 2021 Newswires
Share
Share
Tweet
Email

Drug price transparency could return as top legislative issue

South Metro Neighbor (Forest Park, GA)

ATLANTA - Drug prices and who controls them could be back before the General Assembly this winter, as consumer advocates and pharmacy benefit managers remain at odds over issues such as drug price transparency.

Gov. Brian Kemp signed legislation last year tightening rules on third-party companies that play a role in negotiating pharmaceutical drug prices between insurers and local pharmacies in Georgia.

The bill Kemp signed into law requires companies called pharmacy benefits managers (PBMs) to set drug prices within a national average, a move aimed at reining in excessively high prescription prices.

PBMs act as go-betweens for prescribers and insurance companies that contract with health insurers to negotiate lower drug prices for patients. But critics have long accused them of muddying the process, prompting increases in drug prices and delays in filling prescriptions.

Now, pharmacies such as CVS are worried Georgia lawmakers, when they reconvene in January, may take further action on drug pricing.

"We are aware of efforts by some legislators to further explore drug pricing transparency," said Leanne Gassaway, vice president of state government affairs at CVS Health. "Given the state's enactment of PBM-related legislation nearly every year over the past decade, we would welcome the legislature to closely examine drug manufacturers' role in drug pricing, including a notable lack of transparency in setting and increasing list prices."

Ryan Hamilton, an associate professor at Emory Goizueta Business School, said price transparency typically causes drug prices to fall.

"The easier it is for customers to acquire price information, the greater the need for manufacturers to compete," he said. "But the prescription pharmaceutical industry in the U.S. is so heavily regulated, those general rules may not apply."

Hamilton said PBMs serve as an interface between drug manufacturers and pharmacies.

"Any measures to cut out middlemen from the equation are naturally going to cause protests," he said.

"PBMs support and practice actionable transparency that enables patients, their physicians, and health plan sponsors in Georgia to make informed decisions on how best to manage prescription drug costs and empowers Georgia's policymakers with the information they need to make the right policy decisions to lower drug costs for all patients," said the Pharmaceutical Care Management Association, an organization which represents PBMs. "In Georgia, PBMs will save health plan sponsors and patients nearly $30 billion on prescription drug costs."

Laura Colbert, executive director of Georgians for a Healthy Future, agreed the issues of drug prices and transparency, coupled with the role PBMs play in the equation, will come up again in January.

"Discussions over PBMs have been going on for several years, and the legislature seems pretty fired up over continuing that effort," Colbert said, explaining that PBMs were formed to help health insurers negotiate better deals with pharmaceutical manufacturers, and then pass those savings along to consumers.

"But realistically, it's hard to know if those savings are actually being passed along," Colbert said. "Pharmacies and health insurers are buying up PBMs, and it's become especially hard to see where savings are being accumulated."

One bill that will definitely carry over into January is House Bill 164, entitled the Prescription Drug Consumer Financial Protection Act. It would require health insurers to pass along no less than 80% of all prescription drug rebates to their enrollees.

"That 80% is consistent with what the Affordable Care Act requires," Colbert said.

"We've been having some very fruitful discussions and we're anticipating a very active legislative session," said Gassaway, who is tackling a tough public relations challenge: convincing lawmakers and their constituents that making drug prices openly and readily available to the general public will, in fact, lead to higher drug prices.

"If we just put the prices out in the public domain, that information will be used to further manipulate the market," she said. "We are not opposed to showing our clients how much we save them on drugs. We try to push that price down but putting a specific discount out into the public domain will only cause prices to rise.

"We have some other, great ideas on how to make that information available to patients in more useful ways."

One of CVS Health's ideas is making drug prices available, in real time, to doctors when they're prescribing medications. "We have the ability to make that information available at the physicians' fingertips, to determine the best prices," Gassaway said. "That kind of information – such as cost-sharing alternatives – would be really helpful to patients."

Gassaway touts CVS' member-specific benefit information, which includes plan information, deductibles and other data that, the company said, lets health-care providers and CVS members know if a specific drug is covered as well as the member's cost.

CVS said Georgia has some of the strictest PBM laws in the country. PBMs are now required to publicly report how close to a national average many health plans' drug prices were negotiated. The state is also requiring PBMs to give state officials some confidential information on rebates and other negotiating tools.

PBMs are also now required to submit to new audits by the state Department of Community Health as well as requirements for publishing data on prescription prices online. They are also required to offer full rebates to health plans that are typically given by drug makers, rather than pocketing a portion.

Older

Children Life Insurance Market May See a Big Move : Major Giants CPIC, Aviva, Allianz

Newer

Safekeep, Inc Announces Partnership with Duck Creek Technologies

Advisor News

  • Flexibility is the future of employee financial wellness benefits
  • Bill aims to boost access to work retirement plans for millions of Americans
  • A new era of advisor support for caregiving
  • Millennial Dilemma: Home ownership or retirement security?
  • How OBBBA is a once-in-a-career window
More Advisor News

Annuity News

  • Great-West Life & Annuity Insurance Company Trademark Application for “EMPOWER BENEFIT CONSULTING SERVICES” Filed: Great-West Life & Annuity Insurance Company
  • 2025 Top 5 Annuity Stories: Lawsuits, layoffs and Brighthouse sale rumors
  • An Application for the Trademark “DYNAMIC RETIREMENT MANAGER” Has Been Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
  • Product understanding will drive the future of insurance
  • Prudential launches FlexGuard 2.0 RILA
More Annuity News

Health/Employee Benefits News

  • Researchers from Michigan State University Report Details of New Studies and Findings in the Area of Managed Care (Short Report: Disparities In Hours of Applied Behavior Analysis Services for Medicaid-enrolled Autistic Youth): Managed Care
  • SENATORS: TRUMP AND CONGRESSIONAL REPUBLICANS' BUDGET BILL THREATENS ESSENTIAL MENTAL CARE FOR NEARLY 800 MALHEUR COUNTY RESIDENTS ENROLLED IN THE OREGON HEALTH PLAN
  • New consumer laws are coming soon to Florida — and they may affect you
  • Thousands cancel health insurance plans on exchange ahead of subsidies ending
  • Health insurance sign-ups in Colorado are running even with last year, despite loss of big federal subsidies
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • 2025 Top 5 Life Insurance Stories: IUL takes center stage as lawsuits pile up
  • Private placement securities continue to be attractive to insurers
  • Inszone Insurance Services Expands Benefits Department in Michigan with Acquisition of Voyage Benefits, LLC
  • Affordability pressures are reshaping pricing, products and strategy for 2026
  • How the life insurance industry can reach the social media generations
More Life Insurance News

- Presented By -

Top Read Stories

  • How the life insurance industry can reach the social media generations
More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Slow Me the Money
Slow down RMDs … and RMD taxes … with a QLAC. Click to learn how.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

Press Releases

  • Two industry finance experts join National Life Group amid accelerated growth
  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet