DOVER, DEL. – State Auditor Kathy McGuiness today released the following statement regarding proposed regulations for pharmacy benefit managers (PBMs):

“This month, I released a report titled ‘Lack of Transparency & Accountability in Drug Pricing Could be Costing Taxpayers Millions’ that listed the ways poor contracting with Express Scripts Inc. (ESI) cost Delawareans over three times the average drug inflationary rate. My team specifically discussed the financial impact on the State Benefits Office (SBO) and how ESI cost Delaware’s taxpayers over $24.5 million more than they should have paid for state employees’ prescription drugs.

“PBMs would like everyone to believe that legislative limits on their predatory practices would result in higher healthcare costs, but the National Community Pharmacists Association (NCPA) released a report, ‘Controlling PBM Conflicts of Interest Does Not Raise Healthcare Costs,’ that compares premium increases between 2015 and 2019 and notes that:

‘The premium increase in states with licensing authority over PBMs during that period was .3% below the national average, while states without licensing authority saw their premiums increase .4% above the national average.’

“The First State has a tremendous opportunity to have better oversight and administrative practices. Delawareans have already paid more than they should have.

“Failing to take action now continues a concerning trend that leaves Delawareans footing an inflated bill.”

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Contact: Anna Nuzzolese, Executive Assistant 302-857-3907 Anna.Nuzzolese@delaware.gov