New Legislation from Senator Mike Crapo Attempts to Lower Prescription Drug Costs

For decades, America’s seniors have paid the highest prices in the world for lifesaving medications while big drug companies padded their profits.

But lowering drug prices cannot be done in a vacuum. As AARP continues fighting to hold drug companies accountable for price gouging older Americans, we’re also supporting efforts that work to correct problematic behavior in the entire prescription drug supply chain.

Recently, Senator Crapo introduced new bipartisan legislation to curb the power of pharmacy benefit managers, or PBMs. PBMs negotiate prescription drug prices with drug companies on behalf of insurers and have come under scrutiny for certain business practices that could play a role in high drug prices.

Currently, some PBM fees are linked to drug prices, which critics say incentivizes PBMs to cover high-priced drugs instead of lower-priced alternatives. Senator Crapo’s Modernizing and Ensuring PBM Accountability Act would prohibit PBM compensation from being tied to price, which would eliminate this incentive. It will also set stricter requirements for PBM reporting on pricing and financial arrangements, creating more transparency across the drug supply chain.

We thank Senator Crapo for his ongoing bipartisan efforts to make prescription drugs more affordable for Americans who are often forced to choose between food and life-saving medicine.

There’s more work to do to bring relief to older Americans who are struggling to pay for their medications.

AARP will keep fighting to lower drug prices in Idaho and across the country, and we won't back down until all Americans 50+ can afford their medication.

Lupe Wissel
AARP Idaho State Director