Matthew Fiedler’s testimony on pharmacy benefit manager reform

Matthew Fiedler testified at a hearing held by the Health Subcommittee of the House Committee on Energy and Commerce on pharmacy benefit manager (PBM) reform. His testimony addressed how the market for PBM services is working, as well as the potential—and limits—of recent reform proposals. It made four main points:

• The market for PBM services features limited competition, which likely allows PBMs to charge prices that exceed their cost of delivering services.
• Greater transparency could reduce the price of PBM services, albeit likely modestly.
• Proposed restrictions on how payers compensate PBMs would have more complex effects on payers, both positive and negative.
• If the goal is to make prescription drug coverage work better, PBM reform is one piece of the puzzle, but perhaps not the most important one.

Read his full testimony here