Senate Democratic Leader Jay Costa, Health and Human Services Democratic Chairman Sen. Art Haywood discouraged by Auditor General’s report on pharmacy benefit managers, call for process improvements

HARRISBURG, PA – August 27, 2024 Today, Auditor General Tim DeFoor released the results of an audit of the effectiveness of state contracts and oversight of Pharmacy Benefit Managers (PBMs) used by the HealthChoices Medicaid program operated by the Pennsylvania Department of Human Services (DHS).

In response to the findings and framework of this report, Senate Democratic Leader Jay Costa and Senator Art Haywood, chairman of the Democratic Health and Human Services Committee, issued the following statements:

“This performance audit provided the Auditor General with an opportunity to meaningfully engage in a conversation with the Department of Human Services about protecting patients, local pharmacies, and healthcare workers across Pennsylvania.” said Senator Costa. “Instead, we received an audit that fails to leverage the work of the House and Senate and misleads taxpayers about industry practices. I am deeply disheartened that we did not seize this moment to address PBM abuses, and I certainly anticipate much more work in this space as we move forward to provide high-quality, affordable health care to every Pennsylvanian.”

“I am very disappointed with the Auditor General. After a huge bipartisan bill to address PBM issues that hurt pharmacies, he issued a bogus audit,” he said Senator Art HaywoodDemocratic chairman of the Health and Human Services Committee. “Instead of auditing the federal and state definition of spread pricing, which we prohibit, he audits his own definition. That’s an unfortunate abuse of power and it’s unacceptable.”

In April 2024, the Senate Democratic Policy Committee held a hearing on pharmacy deserts and PBMs. Video footage of the hearing and written statements from the speakers are available here.

For more information about Pennsylvania Senate Democrats’ commitment to ensuring high-quality, affordable health care for every Pennsylvanian, click here.

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