The law, originally introduced as H.B. 1993 by state Representative Jessica Benham, received broad support and was signed by Governor Josh Shapiro.
During the news conference held at Pine Grove Pharmacy, Representative Benham of Allegheny County highlighted the need for stronger regulation of certain business practices in the pharmaceutical industry. She emphasized that the new law targets specific practices by Pharmacy Benefit Managers, or PBMs, that have been criticized for driving up costs and putting small pharmacies at a disadvantage.
"In many areas of our economy, we have failed to adequately regulate predatory business practices that corporations are using to drive out small businesses and increase the costs of basic necessities like prescription drugs. The passage of this bill sends a strong signal that, here in Pennsylvania, we’re not going to stand back and let small businesses wither away."
The legislation addresses several controversial PBM practices, including patient steering, retroactive recoupment of payments, and mandatory mail-order prescriptions. It also requires PBMs to submit transparency reports to the Pennsylvania Insurance Department and grants the department greater oversight.
Local pharmacist Darrin Silbaugh spoke about the challenges faced by independent pharmacies under current PBM practices.
"The PBMs control the market and tell us what prescriptions we can sell and how much we can make. And since they’re vertically integrated with our competitors, it means our competition is controlling whether we can survive, and often we cannot. This legislation will provide important oversight and other protections for our pharmacies."
Support for the new law also came from state Representative Tim Twardzik of Schuylkill County, who noted the benefits for customers, particularly senior citizens.
"This Act is important because it protects independent pharmacies and most importantly it helps the customers, many of them senior citizens, who need access to drugs and services. More competitive pricing means seniors can get the medications they need, versus deciding between affording meds or groceries."
Representative JoAnne Stehr, who represents parts of Northumberland and Schuylkill Counties, added that the law will help preserve vital services offered by local pharmacies.
"Coming together for people in our communities is what we as representatives should be doing. Not everyone can or wants to go to a big box pharmacy or be forced to order by mail. Our hometown pharmacies provide critically important services."