Jeanette Hoffman, executive director of Patients Come First New Jersey, said Congress should prioritize lowering prescription drug prices through reform of the pharmacy benefit management (PBM) industry.
She claims that PBMs are "pocketing savings." This statement was made in a letter to the editor for TAPinto Phillipsburg on Jan. 13, 2025.
"As the new session of Congress begins, lowering prescription drug prices for New Jersey patients should be a top priority," said Hoffman. "This includes passing pharmacy benefit manager (PBM) reform as soon as possible. PBMs are the middlemen of the prescription drug industry, pocketing savings meant for consumers and driving up costs for patients, according to a recent FTC lawsuit. For far too long, PBMs have been allowed to exploit a broken system to prioritize profits over patients."
In her letter, Hoffman reported that legislation requiring PBMs to provide more transparency on rebates, drug payments, and pharmacy compensation failed to pass in the last Congress. However, she noted that PBM reform has strong support among voters. According to a Morning Consult poll, 69% of voters back it as "must-pass legislation." New Jersey lawmakers are reportedly working on state-level legislation to address PBM practices and rising drug prices.
The Federal Trade Commission (FTC) has filed a lawsuit against the three largest PBMs—CVS Health's Caremark Rx, Cigna's Express Scripts, and UnitedHealth Group's OptumRx. The FTC accuses these companies of manipulating the insulin market by inflating prices and shifting costs to patients. The commission claims these firms control 80% of U.S. prescriptions and have incentivized manufacturers to raise insulin prices while excluding cheaper options. According to an FTC press release, this led to a significant increase in the price of brand-name insulin Humalog from $21 in 1999 to over $274 in 2017.
PBMs act as intermediaries in the prescription drug supply chain. They negotiate between drug manufacturers, insurers, and pharmacies; manage prescription drug benefits; set formularies; negotiate rebates; and handle reimbursements. Their role significantly influences drug prices and patient access for both public and private insurance plans, according to a report by the Center for American Progress.
Hoffman is also recognized as a public affairs consultant and media spokesperson with expertise in strategic messaging, marketing, crisis communications, and public affairs campaigns. As president of a public affairs firm with over two decades of experience advising corporate and non-profit clients on advocacy issues, political campaigns, policy matters, and state government affairs, she frequently provides insights on politics and public policy on national television and radio platforms.
