Tuesday, March 18, 2025

PBM Bill is a Litmus Test

Governor Haley Barbour would often say, "good policy makes good politics" as an encouragement to stay focused on the mission of economic growth (and as a warning against allowing the superficiality of politics to influence complex policy). Occasionally, an important issue crops up in the Legislature that serves as a good test for lawmakers with stark contrast of good policy vs local politics.

HB 1123 is one to watch. The bill in its current form, heading back to the House after passing the Senate, supposedly aims to help independently owned pharmacies at the expense of national pharmacy benefit managers (PBMs). The problem is, those PBMs are unharmed, and the expense of the government meddling in private contracts will fall on Mississippi employers who provide health insurance to their employees, like locally owned manufacturers, energy companies, construction companies and banks.

For example, amendments added in the Senate would alter agreed on contracts and increase contracted drug costs at all pharmacies if a single pharmacy can show a loss, regardless of what other pharmacies are paying. This increases drug costs and employer costs, and does not impact PBMs in the way it probably intends. Also, self-funded employer health insurance plans are not regulated at the state level but are not excluded from the legislation. If not excluded, costly and time-consuming legal action by these businesses to protect their plans and employees is expected. 

Set the details of this issue aside, adding many millions of dollars of operating costs on some of Mississippi's best employers with no benefit in return is always terrible policy, no matter how many phone calls lawmakers get. 

Whatever the fate of HB 1123, votes on this bill and whether it passes in its current form will be a good litmus test in who's for good policy. Most would probably agree finding a way to improve business conditions for locally-owned pharmacies is a worthy mission but not at the expense of other local employers. Solution? One good option would be returning the bill to its original form and avoiding piling unnecessary costs on employers.

This post was authored and sponsored by Mississippi Energy Institute Executive Director Patrick Sullivan. 

 

28 comments:

David said...

It smells so much that a PBC such as CVS Caremark also has a corporate interest their own pharmacies. There are some instances of the reimbursements to local pharmacies are pennies. No one can stay in business with that return. There needs to be more transparency.

Anonymous said...

What a crock.

These people are for PBMs. PBMs are designed to kill local pharmacies, which are local businesses which support other local businesses. Support your local pharmacy, not the big drug/PBM industry.

Local pharmacies are vital. Please don't fall for slick pitches from lobbyist with 7 figure retainers.

Anonymous said...

If you're on Medicare and have a prescription drug plan, you pay for it monthly and the plan dictates where you shop (if you want the lower cost of drugs offered by the plan).

I have Silver Script as a drug plan and either they own CVS or vice versa. So, I'm sorta had by the balls.

Anonymous said...

I don’t know about this. But any entity or job description with the word “manager” in it gives the whiff of rotting fish to me.

Anonymous said...

When the PBM has more MBAs and attorneys than pharmacists on staff you know who is doing the bending over!

Anonymous said...

"This post was authored and sponsored by Mississippi Energy Institute Executive Director Patrick Sullivan. " Keep repeating the scare tactics that you've been fed. Being used as a proxy by the PBM's.
Many other states have passed meaningful PBM reform and it's been proven in these states that costs go down, not up. The Mississippi Board of Pharmacy recently released the results of an audit on Optum, a PBM, that proves Optum pays it's own pharmacies up to 22 times more than what they pay independents for the same medication. So I ask you, when PBM's force the insured to use the higher cost alternative (via steering), who is it that is really increasing the costs you pay?

Anonymous said...

One of the provisions of this bill that the Mississippi Energy Institute wants stripped out is an anti-steering provision. Basically Patrick Sullivan wants you to be forced to use whatever pharmacy your PBM decides and not whoever you want to use. If you want to use whatever pharmacy YOU choose, HB1123 is good for you. Don't want to be forced to use mail order? You won't have to. Don't want to be told you must go to CVS? You won't have to. Call your Representative and tell them you want them to concur on HB1123.

Anonymous said...

It’s like that scene in 8 Mile “pay attention meathead, you’re saying the same shit that he said.”

***points at MS Bankers Association***

Are yall bought and paid for by the same PBM?

David said...

PBMs have bought and paid for plenty of the folks deciding the fate of the bill.

Anonymous said...

If we are left with Walgreens and CVS to deal with for prescription drugs, God help us all!!

Anonymous said...

This is a garbage article. I have several clients who are locally owned pharmacists. The PBMs (distributers) and the Retailers (CVS) have consolidated and are driving locally owned pharmacies out of business by charging them much higher prices for the same drugs. Classic monopoly. I wonder what prices will do once the Mom and Pops are gone? If you wonder why your legislater votes against this check into how much money was donated to their campaign by these out of state organizations. Hint: It is the same folks buying their steaks at Ticos or wherever folks eat in Jackson these days. Kingfish, how much were you paid to publish this article? I'm not judging you... but would be curious to know.

Anonymous said...

This post was authored and sponsored by Mississippi Energy Institute Executive Director Patrick Sullivan. I agree that the big picture is more important than local politics. So where are the FACTS you have to support this claim? I don’t see any FACTS in your statement or anywhere else to support your claim. It looks more like a last minute frantic ditch effort from high dollar PBMs to BULLY certain groups in Mississippi. They both BULLY your companies/industries and then continue to make these employers and employees suffer even though they sign these contracts. Yesterday it’s bankers. The other day it was shipbuilding. Today it’s MS Energy. How come almost ALL other states have passed PBM reform EXCEPT Mississippi? I can cite numerous FACTS and POSITIVE RESULTS from many other states. Why are you even entertaining FALSE statements of the PBM bullies to push this state BACKWARDS? The MS Senate & House have worked TOGETHER. Local pharmacies have made some FAIR concessions. What am I missing here? It should be a no-brainer to CONCUR HB1123. The people have spoken. It’s in the best interest of those who were elected by the people to honor their wishes.

Anonymous said...

Then why are the JP Morgan employees suing because the PBMs significantly increased their drug prices and premiums.

Anonymous said...

Mr. Sullivan, Do your own homework!! Have you researched what other stat es have done and how costs are lowered when PBMs have some oversight?? Have you watched the documentary “Modern Medical Mafia “ ?? No, I didn’t think so! The federal government is getting involved and is investigating the unfair mafia-like business practices of PBMs where they make billions of dollars a year at the expense of independent pharmacies. When all of their illegal and unethical practices are exposed, YOU will be the one looking like the fool!!

Anonymous said...

8:26


.
fetch


4:58 1


.1ll 5G4 664


BECKER'S
PAYER ISSUES
The lawsuit also notes that JPMorgan
previously launched initiatives such as
Haven Healthcare, which aimed to address
PBM practices and improve employer-
sponsored health plans across industries.
According to the suit, the bank allegedly
ignored reform recommendations before
Haven was shuttered in 2021.


The plaintifs argue that JPMorgan could
have saved millions of dollars by choosing
better pricing options or a more transparent
"pass-through" PBM model. Instead, the
plaintiffs claim that JPMorgan's failure to
explore alternatives led to excessive costs
for employees and their families through
higher drug costs and overall premiums


The lawsuit is seeking to recover any
overpaid costs and ensure future plan
compliance with ERISA.


Several large employers and insurers have
faced lawsuits in recent years from
employees over claims of mismanaging
health and pharmaceutical benefits and
violating their fiduciary duties, with notable
examples including Owens & Minor, Kraft
Heinz, Wells Fargo and Johnson &
Johnson. In January, a federal judge
partially dismissed the lawsuit against J&J.


SUBSCRIBE


Subscribe to the following topics:
meta name=keywords content=jpmorgan


◦ beckerspayer.com

Kingfish said...

Just like any other business would tell you: None of your business.

Anonymous said...

I hope some smart lawyer files a class action lawsuit against the PBMs and the big corporations that support them!!!

Anonymous said...

PBMs forcing mail order at the same time the USPS can't deliver seemingly anything on time, or within a reasonable time window, is screwing over senior citizens.

Anonymous said...

So Kingfish, if as you say “any business would tell you “it’s none of their business””, so do you agree that contracts including controlled substances that are under the supervision of the DEA and MS Board of Pharmacy do not need to be transparent to the entities that supervise them? How can these entities (DEA & MS Board of Pharmacy) effectively accomplish their supervision roles without this adequate information, yet are subject to scrutiny if the supervision is lacking? This matter is concerning to me.

Kingfish said...

Since you are reading comprehension challenged, I will spell it out for you. You asked what the paid post paid. I said it was none of your business. What I really meant was none of your damn business. That had nothing to do with the contracts you mentioned and you know it.

David said...

The local pharmacies are at a tremendous disadvantage with signing these PBM contracts. Its basically a take it or leave it situation. If the local pharmacies discuss contract details and whether to accept it or not, that's considered collusion, which can be prosecuted. Its not a level playing field for locals.

Anonymous said...

Big Business (PBM) outside of Mississippi are paying politicians and now bankers to run Mississippi small businesses out business. Call your pharmacist asked them. We support our pharmacists not outsiders and PBMs

Anonymous said...

In MS, you can be sure that what ever industry a law is meant to restrain was actually written by that industry for the benefit of that industry. In this case, the PBMs paid for the language in the bill, and they are paying for the legislators that they need to get it passed.

JimAtTheRez said...

PBM's having been killing small off small pharmacies by the hundreds yearly. They pay so little (many times below the pharmacy's actual cost) and then have policies that you must meet at a certain percentage on their guidelines on all their claims, or they will use that as an excuse to claw back more money from the pharmacy each year. They pay the pharmacy one price, then charge the insurance/entity another higher price (sometimes extremely higher), and pocket that money in addition to the management fee. Trust me, the only PEOPLE that PBM's care about are PBM's. And this incestual like relationship that exists with CVS and CVS/Caremark is the worst. Talk about spread pricing and patients being steered to certain pharmacies only. The only problem with HB 1123 is that it does not go far enough, but there is finally beginning to be some movement on the national level against PBM's. Too little too late for many local independent pharmacies, however.

Anonymous said...

Kingfish, as I do not consider myself reading comprehension challenged as you most rudely deemed me to be, I was merely giving you the opportunity to clarify your answer. I was unclear in your response and didn’t know if you and/or other readers were aware that currently the MS Board of Pharmacy does NOT have access to the contracts between the PBMs & businesses. These contracts still fall under the supervision of the MS Board of Pharmacy.

Anonymous said...

Article is a load of horseshit.

Anonymous said...

When special interest groups start paying to post things here, there, or anywhere else, that outline the whole argument, pro and con, the upside and the downside, I'll take them seriously. Until then, it's just fucking advertisement selling things to people who neither understand them or can actually afford them.

Anonymous said...

How so? Be specific.



Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.