Thank you, Governor Hochul, for signing the Anti-Gag clause bill
For a long time, companies known as “PBMs” (Pharmacy Benefit Managers) have evaded public scrutiny, even though their parent companies rank in the top 15 of the Fortune 500.
Suddenly, things are changing, with these “Middlemen of Healthcare” now coming under the microscope of mainstream media, garnering much negative attention. One example is that New York Times investigative reporters are doing a deep dive into how PBMs operate, and how the three largest of them control more than 80% of the prescriptions in the US, effectively monopolizing the industry. PBMs control what medications are available for patients, their copays, and what pharmacies get paid. PBMs include “gag clauses” in their “take-it-or-leave-it” contracts with pharmacies, which prevent pharmacists from discussing with patients the financial aspects of their prescriptions.
Transparency should be a key element of healthcare. PBMs have long been difficult to fathom, due to their convoluted, complex business model that they themselves designed. They abhor transparency. They want to remain a mystery because it helps to perpetuate their industry’s stranglehold on the public.
During this past legislative session, both the Senate and Assembly passed the “anti-gag clause” bill (S9040 {Gounardes}, A9764 {Rosenthal)}, which will enable pharmacists to help patients to better navigate their healthcare. Today that was signed into law by the Governor This is a small step towards correcting inequities in healthcare, but an important one, providing drug pricing transparency for our patients.
We thank the governor for her action and look forward to working with her and the legislature on other upcoming initiatives that will improve health care in NY State.
Joseph J. Bova serves as the Executive Director of Pharmacists Society of the State of New York.
