Montana seeks to make the US state act as a PBM

US Representative Brad Newman has introduced a bill in the Montana statelegislature that would have the state act as a pharmacy benefit manager for around 220,000 Montanans who cannot afford health insurance or who carry insufficient policies.

Drugmakers would be required to give the state upfront discounts for volume purchases, similar to those which some firms now offer on drugs bought through Medicaid, reports the Associated Press. The program's cost would be about $16 million over the next two years, mostly going for staff and equipment.

Rep Newman told the Montana House Appropriations Committee that the drug industry is the most profitable in the world, so it is unfair that so many Montanans cannot afford the prescriptions they need, said the AP. The Pharmaceutical Research and Manufacturers of America compared the plan to Maine's proposed Act to Establish Fairer Prescription Drug Prices (Marketletter March 12), saying it is unconstitutional and would violate interstate commerce laws by changing the prices of drugs in one state but not others.