CCAGW Urges Pennsylvania Legislators to Oppose Senate Bill 1000 | Council For Citizens Against Government Waste

CCAGW Urges Pennsylvania Legislators to Oppose Senate Bill 1000

State Action

April 9, 2024

Health and Human Services Committee  
Pennsylvania Senate
501 North 3rd Street
Harrisburg, Pennsylvania 17120

Dear Senator,

On behalf of the 73,368 members and supporters of the Council for Citizens Against Government Waste (CCAGW) in Pennsylvania, I urge you to oppose SB1000.  This legislation would create unnecessary regulatory barriers that will undermine the effectiveness of pharmaceutical benefit managers (PBMs) in Pennsylvania and increase prescription drug costs for patients.

PBMs save money for patients by negotiating lower prices on behalf of large groups.  More than 275 million Americans who obtain health coverage from their employers, unions, state government plans, and other sponsors rely on PBMs to administer their prescription drug plans.  PBMs use various tools like rebates, pharmacy networks, drug utilization review, formularies, specialty pharmacies, mail-order, and audits to drive down drug costs, improve quality, increase patient medication adherence, and prevent fraud. 

SB1000 will cost the state more than $18 billion in increased prescription drug costs.  The bill would restrict the use of preferred pharmacy networks, specialty pharmacies, and mail-order pharmacies.  PBMs provide savings for patients by allowing a specialty pharmacy to ship a drug for a given patient offering home delivery of prescriptions at a lower cost.  Restricting this cost-saving practice takes choices away from patients and limit benefits resulting in increased costs.  This bill also mandates an any willing provider requirement which limits negotiations on behalf of patients and will lead to less competition in the healthcare marketplace, resulting in higher prices.  SB1000 also includes a new $10 dispensing fee for prescriptions filled in Pennsylvania, which will be passed onto consumers. 

For the above reasons, I urge you to oppose SB1000, which would insert the government further into the healthcare system and result in higher costs and fewer choices for patients in Pennsylvania.

Sincerely,
Tom Schatz
President, CCAGW