Legislation introduced to prohibit PBM clawbacks & pharmacist gag orders in Ohio

Rep. Scott Lipps discusses the need to address high drug prices The Ohio Pharmacists Association (OPA) applauds new legislation, HB 479, introduced by Representative Scott Lipps (R-Franklin) and Representative Thomas West (D-Canton) that aims to end a secretive practice that is causing patients to pay more than they should at the pharmacy counter.

As prescription drug prices continue to grow, 6 in 10 Americans say lowering the cost of prescription drugs should be a “top priority” for lawmakers. In Ohio, despite the failure of the unworkable "Drug Price Relief Act" (Issue 2), a message was sent that something must be done to get drug pricing under control. OPA has worked extensively with Reps. Lipps & West to address out-of-pocket expenses for patients and to shed light on a problem that OPA members have said must be stopped.

First, HB 479, dubbed the "Prescription Drug Co-Pay Integrity Act," will prohibit the practice of pharmacy benefit managers (PBMs) requiring pharmacists to charge patients an amount greater than the pharmacy's cash price for a particular prescription drug. Second, the legislation would prohibit "gag clauses" that some PBMs place in pharmacy contracts that penalize pharmacists for disclosing a complete picture of the financials of a patient's prescription drug transaction.

This issue has received significant attention in the media recently, and it all started with a 2016 investigative report from a news station in New Orleans. Similar legislation has already been passed in more than a dozen states. The practice has resulted in more than 16 lawsuits across the country.

Rep. Thomas West describes what a PBM clawback is To mark the roll-out of HB 479, OPA stood alongside Reps. Lipps & West, and Holly Pendell, director of advocacy and activist engagement for the National Multiple Sclerosis (MS) Society, to announce the bill's introduction. To view that press conference in its entirety, see the Ohio Channel's video HERE.

It's no secret that OPA has been very outspoken about the problems with prescription drug pricing (see here, here, here, and here). We've spent a great deal of time working to reform a broken system that rewards big supply chain middlemen and results in higher drug costs for employers, taxpayers, and patients. HB 479 is just one attempt at ensuring that patients aren't paying any more than they have to for their needed medications.

"The clawback is just the latest example of PBM tactics that deceive patients, inflate the cost of prescription drugs, and line the pockets of administrative middlemen," said OPA Director of Government & Public Affairs Antonio Ciaccia. "It's time to reclaim the idea that a co-pay is a shared payment; not an imposed overpayment."

OPA thanks Representatives Scott Lipps & Thomas West for taking the lead on lowering out-of-pocket expenses for patients. Additional thanks to Representatives Jim Butler, Ryan Smith, Nino Vitale, Gary Scherer, Dick Stein, Scott Wiggam, Steve Hambley, Michelle Lepore-Hagan, Glenn Holmes, Mike Ashford, and Kyle Koehler for signing on as lead co-sponsors.

The legislation is already attracting supporters from across the industry, and our "Ohio Prescription Partnership" coalition continues to grow. Here is a list of the current supporters of the legislation:

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Legislation introduced to prohibit PBM clawbacks & pharmacist gag orders in Ohio