Please ensure Javascript is enabled for purposes of website accessibility House Health Committee hears testimony on Matzie bill to move Pennsylvania to single Pharmacy Benefit Administrator model

House Health Committee hears testimony on Matzie bill to move Pennsylvania to single Pharmacy Benefit Administrator model

Would protect drug consumers, help bring consistency and fairness to pharmacy reimbursements

HARRISBURG, June 10 – The Pennsylvania House Health Committee today heard testimony on legislation (H.B. 2270) introduced by state Rep. Rob Matzie that would create a single Pharmacy Benefit Administrator model for all of Pennsylvania's state-funded healthcare programs.

Matzie helped lay the groundwork for passage of Act 77 of 2024, which brought greater oversight and transparency to the practices of PBMs – third-party administrators that decide which drugs consumers can receive, at what price, and how much dispensing pharmacies are reimbursed – but said more action is needed as Pennsylvania’s small mom-and-pop pharmacies continue to fail as a result of PBM practices that favor large chains.

“Beyond the dollars and cents, we all know that some PBMs – for a variety of reasons – pick winners and losers. And the losers, so to speak, have been not only our community pharmacies but some chain pharmacies, as is apparent from the closure of Rite Aid,” said Matzie, who is chairman of the House Majority Caucus and co-chair of the Pennsylvania Community Pharmacy Caucus. “Act 77 brought greater accountability and transparency to the practices of these middlemen, but regulating the patchwork network of these administrators remains difficult.

“By directing the Department of Human Services to select one single administrator to manage prescription drug benefits statewide, our bill would bring these practices under one umbrella, allowing for more effective regulation and bringing consistency, fairness, and transparency to pharmacy reimbursements.”

Matzie said that after adopting a similar model, West Virginia and Ohio saved $54 million in one year and $140 million over two years, respectively, while California, Kentucky, New York, North Dakota, and Utah have seen combined savings totaling more than $1 billion.

“It’s our responsibility as policymakers to put forth measures that deliver the most positive impact to our most vulnerable constituents while minimizing the impact on our taxpayers,” Matzie said. “Our bill would do both while also restoring the health of some of our most important small businesses.”

Matzie introduced the legislation, which will next move to a committee vote, with state Rep. Katie Kunk, R-York.