Governor vetoes new regulations on PBMs

PBMs say they create deals between drug manufacturers, insurance companies, and government health plans over the supply of medication for patients, which allows them to negotiate lower drug costs.

PBMs say they create deals between drug manufacturers, insurance companies, and government health plans over the supply of medication for patients, which allows them to negotiate lower drug costs. However, Marilyn Bartlett, a special projects coordinator for the Montana State Auditor's office, said PBMs work as middlemen that profit as a drug passes from manufacturer to pharmacy. She and others recently worked on Senate Bill 71, which attempted to remove spread pricing in the sale of drugs. According to the State Auditor's office, the legislation could have saved 70,000 Montanans on individual plans around $8 million in the first year. However, PBMS and insurance companies opposed the bill and Gov. Steve Bullock vetoed it, saying the bill would raise drug costs.