CHICAGO - Today, Congressman Raja Krishnamoorthi (D-IL) testified before the U.S. Senate Committee on the Judiciary during a field hearing in Chicago on lowering prescription drug costs for Americans. Chaired by Senate Judiciary Committee Chairman Dick Durbin (D-IL), the hearing included several members of the Illinois Congressional Delegation along with state and local leaders discussing how stronger industry oversight, fairer market competition, and increased cooperation between the government and health care sector can make prescription drugs more affordable for patients. During his testimony, Congressman Krishnamoorthi highlighted how Pharmacy Benefit Managers (PBMs) act as middlemen between patients and drug companies, driving up prices and squeezing out local and independent pharmacies.

"Pharmacy Benefit Managers (PBMs) are raising drug costs for Americans and shutting down countless independent pharmacies," Congressman Krishnamoorthi said. "The egregious business practices of PBMs harm patients and make it more difficult for our constituents to access the medications they need. I will continue to do everything in my power to pass much-needed PBM reform legislation. I want to thank Senator Durbin for his leadership in holding today's hearing and all my colleagues who participated for their shared commitment to lowering prescription drug costs for all Americans."

In recent years, PBMs have tightened their grip on the prescription drug market, positioning themselves as middlemen between drug companies and patients. This position allows them to negotiate drug prices that maximize their profits and drive up medication costs for Americans. PBMs also undermine local and independent pharmacies by imposing clawbacks and direct and indirect remuneration (DIR) fees, specifically targeting the roughly 20 percent of pharmacies not owned by a PBM. These practices have left 73 percent of Illinois counties in a pharmacy desert, forcing patients to travel farther for essential medication. In 2024 alone, over 2,000 local and independent pharmacies across the U.S. have closed due to these pressures.

Congressman Krishnamoorthi has been a leader in fighting against PBMs during his time in Congress, including introducing the bipartisan Pharmacist Audit and Compensation Transparency (PhACT) Actthis month that would direct the Department of Health and Human Services (HHS) to investigate PBMs and make recommendations to increase transparency and fairness that benefit patients. Congressman Krishnamoorthi has also introduced several other bipartisan pieces of legislation aimed at reigning in the power of PBMs, such as the PBM Sunshine and Accountability Actand the Neighborhood Options for Patients Buying Medicines (NO PBMs) Act. Both of these bills would establish new public reporting requirements and increase transparency into how PBMs set prices.

The Congressman's full testimony is available here.