Pennsylvania
Reforms Needed to Lower Prescription Costs for Pennsylvania Pharmacies, Families – Senator Ward, J
By Sen. Judy Ward (R-30), Sen. Christine Tartaglione (D-2), Rep. Jessica Benham (D-36) and Rep. Valerie Gaydos (R-44)
It’s hard to believe that right now, in the 21st century, countless Pennsylvanians are losing access to affordable prescription drugs. But that’s exactly what’s happening as more and more community pharmacies are being forced to close their doors due to the little-known role pharmacy benefit managers (PBMs) play in our health care system.
Because of PBMs, our commonwealth’s community pharmacies are faced with Medicaid reimbursement costs that do not cover the expenses incurred to purchase drugs. For some of our pharmacies, this challenge threatens their very survival.
PBMs were created with the best intentions to negotiate pricing with drug companies for prescription drugs through Medicaid to lower costs. But today, three PBMs — CVS Caremark, Express Scripts and Optum Rx — control 80% of the marketplace. With the big three in place, Pennsylvania’s Medicaid spend on the pharmacy benefit has drastically increased, from $1.41 billion in 2013 to $3.7 billion now annually, according to the National Community Pharmacy Association (NCPA).
In February, Mainline Pharmacy announced PBM pricing was forcing the closure of nine of its pharmacies in the greater Pittsburgh region across several counties, including Blair, Cambria and Westmoreland. This happened despite a record year for filling prescriptions because they lost $350,000 in the first six weeks of this year from PBM underpayments. Philadelphia lost several community pharmacies in underserved communities, including the 18th Street Apothecary and Haussemann’s Pharmacy.
We’re seeing this issue repeated across the commonwealth and the nation. The University of Pittsburgh has created a website (ActForPharmacy.com) that tracks community pharmacy closures and provides a sobering view of the challenges Pennsylvania community pharmacies face in staying open — and of Pennsylvanians who desperately need their prescriptions.
That’s why we’re sponsoring bipartisan legislation in the state House (House Bill 1993) and Senate (Senate Bill 1000) to stop this vicious cycle and bring transparency to the process. Transparency is critical to solving this problem because no one really knows how much PBMs are making at the expense of Pennsylvania’s dedicated community pharmacies and their patients.
We’re pleased the need for PBM reforms was cited by Gov. Josh Shapiro in his recent state budget address. Our legislation will direct the state Insurance Department to develop a process for hearing and resolving pharmacy complaints against a PBM. It also will require PBMs to report financial information on rebates and payments received from drug manufacturers and how those rebates and payments were distributed by the PBM. In addition, the legislation will limit or ban several practices by PBMs, including patient steering and spread profit schemes.
The time to enact comprehensive PBM reform is now. Nationally, the issue is taking center stage. A recent White House roundtable on lowering health care costs and bringing transparency to prescription drug middlemen included Pennsylvania pharmacist Dr. Chichi Ilonzo Momah, CEO and founder of Springfield Pharmacy in Delaware County. Speaking for community pharmacists, Dr. Momah detailed what’s happening to community pharmacists and the negative impact PBMs have on the Pennsylvania patients they serve.
Also at the roundtable was billionaire philanthropist Mark Cuban, a co-host of Shark Tank and owner of the NBA’s Dallas Mavericks. An outspoken critic of PBMs, Cuban has formed Cost Plus Drug Company, which provides complete price transparency from manufacturing to prescription delivery.
Let’s stop the needless closure of any more community pharmacies. Pennsylvania has the ability to better protect our commonwealth’s pharmacies, which are vital to their communities through the jobs they create and Pennsylvania families who depend on them for their prescription medications.
Republican Sen. Judy Ward represents Blair County and Democrat Christine Tartaglione represents parts of Philadelphia. Democratic Rep. Jessica Benham and Republican Rep. Valerie Gaydos represent parts of Allegheny County.
Sources:
Mainline closing: https://www.wtae.com/article/mainline-pharmacy-closing-harrison-city-blairsville/46853558
Map of pharmacy closures: https://www.actforpharmacy.com/pharmacy-closures
Legislation: https://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2023&sInd=0&body=S&type=B&bn=1000
Statistics:https://ncpa.org/sites/default/files/2023-02/medicaid-managed-care-reform-2-pager_0.pdf
White House:https://www.whitehouse.gov/briefing-room/statements-releases/2024/03/05/readout-of-white-house-roundtable-on-lowering-healthcare-costs-and-bringing-transparency-to-prescription-drug-middlemen/
Media Contact: Nathan Akers
717-787-2421
Pennsylvania
Pennsylvania Turnpike to switch to
While putting air in his tire near the Pennsylvania Turnpike, Sean Malloy said he uses the highway often.
Malloy said he welcomes the change to open road tolling if it means it makes his commute more convenient.
“No brainer. They should’ve done that a long time ago,” said Malloy.
Tollbooths will soon become a thing of the past on the Pennsylvania Turnpike with the change that begins on Sunday.
Drivers will be charged electronically as they pass under overhead structures called gantries, instead of the traditional stop-and-go tolling. For E-ZPass drivers, the toll money will be taken out of your account, but others will receive a bill in the mail.
The commission advises drivers to make sure they mount their E-ZPass tag in their vehicle and have all their information including their vehicle and credit card updated.
Open road tolling allows drivers to pass through a toll, without the hassle of stopping. This method also reduces incidents on the highway and increases customer convenience.
The change will first start east of Reading and along the Northeast Extension.
“I’ve had E-ZPass for a few years, so I’m kind of used to the drive-thru. I think it’s going to make it a lot simpler for everybody. I think it’s going to avoid a lot of congestion,” said Pennsylvania resident Tony Cuttone.
Another change is how the toll will be calculated. The turnpike will now use the number of axles, height, and miles traveled rather than the vehicle’s weight to determine the rate.
A 5% toll increase will also take effect on Sunday, but the Pennsylvania Turnpike Commission said that with open road tolling and other changes, most non-commercial drivers will pay less than they did before, but commercial drivers could see an increase of up to $5.
“We worked really hard behind the scenes to make sure that all of the changes that are coming with open road tolling are all revenue neutral,” said Marissa Orbanek with the Pennsylvania Turnpike Commission.
Orbanek said the changes will modernize the system and also make it safer to travel.
“We actually have open road tolling highlighted throughout our system currently at the Delaware River Bridge which is closer to the customers in Philadelphia. And where we already highlighted open road tolling, we’ve seen a decrease in the percentage of crash rates,” she said.
The Pennsylvania Turnpike Commission said it will begin removing the toll booths later this year.
Pennsylvania
Meet new and familiar faces from throughout Pennsylvania region being sworn in to Congress
The new year brings a new Congress to Washington after the contentious 2024 elections.
Republicans will control the U.S. House, Senate and White House when President-elect Donald Trump is sworn in on Jan. 20. But the GOP captured a narrow lead in the Senate, and it holds on to one of the smallest House majorities since the Great Depression [219-215 with the resignation of Rep. Matt Gaetz.]
Our area is seeing some new faces taking the oath of office in Washington, and some are changing titles.
Rep. Ryan Mackenzie (R-PA-7)
A former State Representative since 2012, Ryan Mackenzie was one of two Republicans to flip Democratic-controlled House seats in Pennsylvania. Mackenzie narrowly ousted incumbent Democrat Susan Wild to represent parts of the Lehigh Valley, Carbon County and a small portion of Monroe County.
Republican Rob Bresnahan also defeated Democratic incumbent Matt Cartwright in northeastern Pennsylvania.
Mackenzie ran a campaign focused on the economy, inflation and border issues. He represents one of the most purple districts in the commonwealth, having topped Wild in the November election by a little over 4,000 votes.
Rep. Herb Conaway (D-NJ-3)
A longtime lawmaker, Herb Conaway has represented New Jersey’s 7th District in the state assembly since 1998, most recently serving as deputy speaker since 2022. Conaway won the Garden State’s 3rd District Congressional seat [vacated by Andy Kim who won one of the state’s Senate seats] with 53.2% of the vote in November.
According to his campaign website, Conaway holds a medical degree from Jefferson Medical College and a law degree from Rutgers Camden.
Rep. Sarah McBride (D-DE)
Sarah McBride makes history, becoming the first openly transgender member of the United States Congress. A member of the Delaware State Senate since 2021, McBride won the First State’s only congressional seat with nearly 58% of the vote in November.
A Wilmington native, McBride worked in the Obama White House and later served as the national spokesperson for the Human Rights Campaign. Her priorities laid out in her campaign were expanding access to health care, tackling economic issues and ensuring access to reproductive healthcare.
But McBride’s initial reception in Congress has already been rocky, as transgender rights have become a flashpoint in several Republican-led states.
Congresswoman Nancy Mace, a Republican from South Carolina, proposed banning transgender people from U.S. Capitol bathrooms.
McBride brushed off the situation, saying in a statement, “I’m not here to fight about bathrooms.”
“This effort to distract from the real issues facing this country hasn’t distracted me over the last several days, as I’ve remained hard at work preparing to represent the greatest state in the union come January,” McBride wrote in a November post on X.
Sen. Dave McCormick (R-PA)
Republicans were able to retake control of the U.S. Senate due to some key flipped seats, including Dave McCormick‘s win in Pennsylvania. The West Point graduate ousted longtime incumbent Democrat Bob Casey for his Senate seat in November, winning an extremely narrow election by just 0.2%.
It was McCormick’s second time running for a U.S. Senate seat in the commonwealth. McCormick lost to Mehmet Oz in the GOP Senate primary during the 2022 election, a race ultimately won by Democrat John Fetterman.
“The one message we heard over and over again was ‘we need change,’” said McCormick while declaring victory in the tight race in November. “We need leadership to get our economy back on track, to get this horrific inflation under control. We need leadership to secure the border, to stop this scourge of fentanyl.”
McCormick campaigned heavily with President-elect Trump in the key battleground state throughout the 2024 cycle. His campaign featured several top Trump priorities, including issues related to inflation, and securing the U.S.-Mexico border. As a veteran, McCormick, on his campaign site, says it’s also a priority for him to “restore America’s military might.”
Changing Roles
Sen. Andy Kim (D-NJ)
Andy Kim of New Jersey isn’t new to Washington, but he’ll be taking on a new role starting in 2025. The three-term congressman in November became the Garden State’s first Asian American senator. Kim will also be the first Korean American to serve in the U.S. Senate.
The former congressman will also be the first senator from South Jersey in 70-plus years.
Kim won the seat vacated by longtime Democratic Sen. Bob Menendez following his conviction on federal corruption charges. The former congressman garnered 53.6% of the vote, topping Republican businessman Curtis Bashaw.
Kim ran on a platform of supporting small businesses and growing jobs, expanding access to health care, making raising a family more affordable and restoring faith in government following the Menendez indictment.
“It’s important to make sure we step in quickly and to be able to show that we are moving in a different direction, that this is a new era of politics in New Jersey,” Kim told CBS News Philadelphia in December.
The senator was sworn in early, on Dec. 9, after New Jersey Gov. Phil Murphy appointed him to the seat following his election certification. He replaced George Helmy, who served for several months after Menendez resigned.
Sen. Lisa Blunt Rochester (D-DE)
Another local member of Congress is moving across the U.S. Capitol and is making history in the process.
Lisa Blunt Rochester, who held Delaware’s lone congressional seat since 2017, becomes the state’s first woman and first person of color elected to the U.S. Senate. Blunt Rochester defeated Republican Eric Hansen in November, garnering 56.6% of the vote.
She takes over for longtime Democratic Sen. Tom Carper who opted not to seek reelection.
Blunt Rochester’s campaign focused on health care reforms, economic issues and social equality. But the lawmaker has also put a focus on bipartisanship, and in her exit from the House, put out a call for legislators to work together to get things done.
“If we are to build a democracy, a planet, and a future that endures, it will take each and every one of us doing our part,” said Blunt Rochester in her farewell remarks on the U.S. House floor in December.
Pennsylvania
Biden kills U.S. Steel deal; what Trump said and what it means for Pennsylvania
Biden blocks Japanese takeover of U.S. Steel
President Biden is blocking the proposed $14 billion acquisition of U.S. Steel by Nippon Steel.
Fox – 10 Phoenix
President Joe Biden’s decision to block Nippon Steel’s bid to buy U.S. Steel could have significant implications for Pennsylvania and the steel industry.
President-elect Donald Trump had already said he would kill the deal when he takes office later this month to keep a foreign firm from taking over the Pittsburgh-based business.
U.S. Steel employs thousands across its plants and offices in Pennsylvania and the state has about 10% of the nation’s steelworkers.
For them, Biden’s intervention could mean short-term job stability, as the administration emphasizes keeping the company under American ownership.
But, it’s not a fix for U.S. Steel’s problems; the company has said it needs financial resources to upgrade plants and keep pace with demand for steel around the world.
Biden on Friday issued the order blocking Nippon Steel Corp.’s proposed $14.9 billion purchase of U.S. Steel, citing his presidential authority under the Defense Production Act of 1950 and calling the steel industry “critical for resilient supply chains.”
Nippon and U.S. Steel, however, took exception to the order.
In a joint statement, U.S. Steel and Nippon Steel said it was “dismayed” by Biden’s decision, calling it “a clear violation of due process and the law governing CFIUS.”
The companies said blocking the sale will deny billions of dollars in investments planned in the U.S. and vowed to take “all appropriate action to protect our legal rights.”
(This story was updated to add new information.)
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