Jun. 11, 2019

HARRISBURG – Today, Rep. Jonathan Fritz (R-Susquehanna/Wayne) announced that his Pharmacy Benefit Managers (PBM) Subcontract Audit legislation was unanimously passed by the House Health Committee. His bill now moves to the full House for consideration.

“This legislation aims to curb any unfair practices or unfair pricing for prescription drugs under Medicaid. The aim is increased transparency and accountability,” said Fritz. “Consumers, pharmacies and the taxpayer stand to benefit from the increased scrutiny.”

House Bill 944, if enacted, would allow for a full-scale audit of subcontracts with pharmacy benefit managers (PBMs) in Medicaid.

Almost 90% of Pennsylvania Medicaid patients are served by managed-care organizations that contract with the state with nearly $3 billion being paid by Pennsylvania taxpayers to these PBMs for Medicaid enrollees in 2017 alone. Currently, there is no law requiring audits of these PBMs, which leads one to question how we can properly ensure that the $3 billion dollars is being spent efficiently and properly. Ohio recently conducted a similar audit that revealed an overspend of $245 million.

Representative Jonathan Fritz
111th Legislative District
Pennsylvania House of Representatives

Media Contact: Abby Krueger
RepFritzPA.com / Facebook.com/RepFritz