ARLINGTON, Va. — The National Association of Chain Drug Stores (NACDS) today applauded the Senate Finance Committee for including vital reforms to Medicaid pharmacy benefit manager (PBM) practices in its version of the budget reconciliation bill. The move mirrors recent action by the House of Representatives, signaling growing bipartisan momentum to rein in PBM practices that critics say are driving up drug costs and endangering access to pharmacy care.
If passed, the legislation would require full transparency from PBMs, including the complete pass-through of ingredient costs and pharmacy dispensing fees. It would also ban spread pricing and ensure that reimbursement under Medicaid managed care reflects the actual cost of medications — reforms that NACDS has long argued are essential to curbing abusive middleman tactics.
“With the inclusion of these reforms in both the House and Senate versions of this legislation, Congress is sending a clear and united message that the unchecked abuses of PBMs must end,” said NACDS President and CEO Steven C. Anderson. “These measures will ensure that Medicaid managed care pharmacy reimbursement reflects the true cost of acquiring and dispensing prescription medications, strengthening the foundation for pharmacy care nationwide.”
The call for reform comes as pharmacy closures escalate. NACDS reports that more than 5,800 U.S. pharmacies have shut down since 2018, including 1,364 in 2024 alone — a rate of 3.7 monthly closures. These losses have created over 800 pharmacy deserts in ZIP codes nationwide, cutting off millions of Americans' access to essential healthcare services.
“NACDS has long championed these reforms, and decisive action at the federal level is long overdue and needed now,” Anderson said. “There is no time to waste — Americans need relief from soaring drug costs, from threats to healthcare access, and from the harmful practices of PBM middlemen.”
