Representative Tran Co-Leads Bipartisan Bill to Lower Prescription Drug Prices

Washington, D.C. - Today, U.S. Representative Derek Tran (D-CA) helped introduce the bipartisan PBM Reform Act with Representatives Earl L. "Buddy" Carter (R-GA), and Debbie Dingell (D-MI). The bill lowers prescription drug prices for working families and protects patients and community pharmacies by requiring additional transparency and accountability from pharmacy benefit managers (PBM).

The full text of the bill can be found HERE.

"Southern California families are seeing their cost-of-living skyrocket, especially the cost of essential health care. I'm laser-focused on bipartisan, common-sense solutions that bring down costs and ensure that our economy works for working families." said Representative Tran. "My experience running a community pharmacy with my wife showed me firsthand the urgent need for greater transparency and accountability in how Pharmacy Benefit Managers operate. That is why I'm proud to co-lead this bipartisan effort with Representatives Carter and Dingell to reform PBM practices, increase transparency, and put patients first."

Pharmacy benefit managers currently have few checks on their power in brokering negotiations between pharmacies and insurers, allowing them to drive up medication costs and limit industry competition. The PBM Reform Act is a bipartisan effort to prevent abusive practices by PBMs and focus on lowering costs for patients and employers, increasing transparency in drug pricing, and uplifting community pharmacies.

Original Co-Sponsors include: Buddy Carter (R-GA), Debbie Dingell (D-MI), Greg Murphy (R-NC), Deborah Ross (D-NC), Jodey Arrington (R-TX), Diana Harshbarger (R-TN), Vicente Gonzalez (D-TX), Rick Allen (R-GA), Raja Krishnamoorthi (D-IL), John Rose (R-TN), and Nicole Malliotakis (R-NY).

Representative Tran remains committed to lowering the cost of drug prices and easing access to health care for all his constituents. He has consistently rejected attempts to cut funding for Medicaid, including by voting againstthe Republican budget proposal that will drive up health insurance premiums and force millions of Americans out of coverage through Medicaid and the Affordable Care Act. Tran also serves as Co-Chair of the Congressional Lowering Costs Caucus, where he will continue to work with his colleagues to develop solutions to the rise in the cost of living for working families nationwide.

Pharmacy benefit managers were created as middlemen to reduce administrative costs for insurers, validate a patient's eligibility, administer plan benefits, and negotiate costs between pharmacies and health plans. Over time, PBMs have been allowed to operate virtually unchecked as three companies consolidated and now control 80% of the prescription drug market. Vertical integration and a lack of transparency have led to pharmacy closures and higher costs for patients across the country.

"It's time to bust up the PBM monopoly, which has been stealing hope and health from patients for decades. As a pharmacist, I've seen how PBMs abuse patients firsthand, and believe that the cure to this infectious disease is transparency, competition, and accountability, which is exactly what our bipartisan package provides," said Rep. Carter.

"For too long, pharmacy benefit managers have been allowed to operate unchecked, raising prices and preventing many patients from getting the medications they depend on," Rep. Debbie Dingell said. "I hear from too many Michiganders, especially seniors, who can't conveniently access the prescriptions they need, due to exploitative PBM practices complicating access to their local pharmacies. Their harmful, aggressive tactics are only getting worse, and we must take action now to protect pharmacies and lower patient costs. I remain committed to working with my colleagues on both sides of the aisle to get this across the finish line."

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Congressman Derek Tran represents California's 45th Congressional District. Serving his first term in Congress, Congressman Tran is a member of the House Armed Services Committee and House Small Business Committee, where he is Ranking Member of the Oversight, Investigations, and Regulations Subcommittee. Congressman Tran is the son of Vietnamese refugees, a Veteran, and fought for consumers as an attorney before entering Congress.