Gov. Josh Shapiro continued his western Pennsylvania blitz on Wednesday, this time stopping in New Castle to tout regulatory pharmacy oversight reforms.
After stops in Pittsburgh over the weekend and Monday, the governor — with talk swirling he’s in the running to be Kamala Harris’ No. 2 on the Democratic ticket for president — spoke at the Hometown Pharmacy flagship store on South Street to tout the powers of Act 77 of 2024, which increases oversight of pharmacy benefit managers, or PBMs.
“The PBMs hate these reforms. That means we’re doing something right,” Shapiro said.
A PBM administers prescription drug plans for health insurance plans and negotiates prices as a middleman. Among the provisions in the law allow for the Pennsylvania Insurance Department to regulate PBM practices and sets up a consumer reporting system and other transparency tools to help drive down costs.
PBMs can artificially raise prescription drug prices and steer people to certain pharmacies.
“They’ve been failing to significantly reduce prices, unilaterally changing the terms of contracts with pharmacies, and picking and choosing who wins and who loses,” Shapiro said, noting 140 pharmacies closed in Pennsylvania this year and that 21 counties have 10 or fewer pharmacies. “These predatory practices have been screwing over the good people of Pennsylvania, forcing dozens of local independent pharmacies to close in the process.”
