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Rep. Lipps Announces Breakthrough in Battle Against Skyrocketing Drug Prices

August 17, 2018
P. Scott Lipps News

State Representative Scott Lipps (R-Franklin) today announced that the Ohio Department of Medicaid (ODM) is terminating contracts with all pharmacy middlemen. This announcement comes after Auditor Yost presented a draft of his report on pharmacy benefit managers (PBMs) to ODM. The contracts will be re-established with a more transparent pricing model, called “pass-through,” that will take effect January 1st, 2019.

Investigation of the PBM industry first began when Rep. Lipps introduced a series of legislation—including House Bills 465 and 479—targeting the issues of transparency and high drug prices. Auditor Yost began his official investigation into the industry in March.

“Thanks to the relentless efforts of Rep. Lipps, Rep. Koehler, and Ohio Medicaid, I am confident that we’ll all be spending much less on prescription drugs,” said Antonio Ciaccia, the Director of Government Affairs for the Ohio Pharmacists Association.

The Auditor also presented his report on PBMs to the Joint Medicaid Oversight Committee Thursday morning, highlighting concerns of the “spread” price model. 

“I am continually proud of the work on PBMs that we have accomplished,” said Rep. Lipps. “In just a few months, we have shed light on an important issue which will not only help Ohioans but lead the way for other states. The work here is not done, but we are headed in the right direction.”