CRF Pushes Trump Admin to Stop Insurer Cartels Promoting Transparency in Drug Pricing

Staff Writer
Jul 3
2 min read

The CPAC Foundation Center for Regulatory Freedom is calling on the Trump Administration to take bold steps to address the opaque practices of pharmacy benefit managers (PBMs) and their parent insurance companies, which have driven up prescription drug costs for patients and taxpayers while stifling American innovation.

The Problem with "Insurer Cartels"

PBMs were originally designed to aggregate demand and lower costs, but their consolidation with massive insurance companies has led to market distortions. The three largest PBMs now handle over 90% of prescription drug claims, inflating list prices and out-of-pocket costs for patients. By exploiting anti-kickback exemptions in Medicare Part D, these PBM-insurer cartels have skewed market incentives, leaving seniors with record-high Medicare premiums, fewer plan options, and restrictive drug formularies.

CRF Calls for Greater Transparency

On July 2, CRF filed comments urging the administration to expand transparency efforts to reveal how PBMs drive costs higher, so the public can see the full truth behind their prescription drug bills. The comments are as follows:

CRF urged regulators to mandate explicit disclosure of the PBM managing each health plan’s drug benefits, including any affiliated pharmacies, in machine-readable file formats.

CRF has also advocated reviving the Trump-era rebate rule to deliver rebates directly to patients at the point of sale, building on previous pro-consumer transparency measures like hospital price disclosure and new health plan tools.

The unchecked power of PBMs and their vertically integrated insurance parents has placed a heavy burden on patients, taxpayers, and innovators. CRF’s push for transparency aims to restore true price competition, protect consumers, and safeguard America’s leadership in medical innovation. The organization stands ready to assist in crafting market-driven regulations to expose PBM practices and ensure a fairer prescription drug market.