One of the top concerns of employers is the rising cost of health care, and for patients, access to affordable prescription drugs remains vital. Fortunately, Mississippi’s two U.S. senators understand this.
U.S. Senator Bernie Sanders of Vermont is typically far to the left of most Mississippians. Our senators understand that, and I expect they are wary of Bernie Sanders' Pharmacy Benefit Manager Reform Act.
Sanders gave his bill a name that won’t offend many people, but it should be no surprise that Sen. Bernie Sanders and his Democrat allies are pushing for government involvement in a sector of our healthcare system that is competitive and effective at lowering drug costs. Sen. Sanders’ recently proposed Pharmacy Benefit Manager Reform Act could harm Mississippi's healthcare system and bring the nation closer to a socialized healthcare system.
Pharmacy Benefit Managers, or PBMs, may not be a household name, but they administer drug plans for over 275 million Americans who obtain health insurance from various sources. These entities operate within the intricate pharmaceutical supply chain, securing rebates and discounts from drug manufacturers, which translates to significant savings for patients and healthcare plan providers alike, including many small businesses in Mississippi.
Lowering drug prices for everyday Americans is the top priority of PBMs. They negotiate directly with pharmaceutical manufacturers to secure discounts and rebates on prescription medications. PBMs encourage using generic medications over brand-name drugs when appropriate, which are typically more cost-effective and can lead to critical patient savings.
In a world where the cost of healthcare can be a barrier to access for many, PBMs navigate the complicated pharmaceutical landscape to secure lower prices, guaranteeing that millions of Americans can afford the medications they need. The impact of PBMs is monumental, with their annual efforts resulting in an astonishing $148 billion reduction in drug costs, leading to savings of over $1,000 per year for patients. For most Americans, it would be difficult, if not impossible, to pay an additional $1,000 per year for drug costs.
The legislation offered by Sen. Sanders poses a genuine threat to this delicate equilibrium. If the Democrats in Washington get their wish, they will bring more government bureaucracy into our health care system and even cause drug prices to increase.
The core of Sen. Sanders’ legislation involves adding onerous administrative burdens and government red tape on PBMs, which will inevitably escalate operational costs. The government does this in all sorts of industries leading to higher prices for consumers and making it harder for businesses to operate.
Instead of attacking the parts of our healthcare system that are actually working, Congress should focus on policies that foster more competition and focus on addressing anti-competitive practices across the sector. This is the sort of common sense leadership Senators Wicker and Hyde-Smith provide to their constituents, and we should thank them for opposing this sort of far left “reform” from Senator Bernie Sanders.
Charles Barbour is a former Hinds County Supervisor.
