BOISE ( ) – In January, a new Idaho law will take effect requiring reform of business practices by pharmacy middlemen — in search of tamping down prescription drug costs. The new law targets pharmacy benefit managers, known as PBMs, which are essentially middlemen in the process of delivering pharmaceutical drugs to patients. They are meant to save costs by working with health insurance companies, pharmacies, drug manufacturers and others.
But recently, PBMs have been under scrutiny. A recent report by federal regulators said PBMs drive up costs. U.
S. Sen. Mike Crapo, R-Idaho, has pushed for federal PBM reform that has stalled in Congress.
Idaho’s new law, passed through in 2024, mandates more transparency from PBMs, bans some of their practices and — hopefully — saves money on drug costs for consumers. “Pharmacy benefit managers (were) to make sure there wasn’t misuse from the pharmacist to the patient and the providers prescribing. However, that has been completely perverted into just a business that just is able to harvest money without showing any kind of transparency there,” bill sponsor Rep.
Jordan Redman, R-Coeur d’Alene, told the Idaho Capital Sun in an interview. “And that’s what’s driven to the exorbitant cost of pharmaceuticals throughout the entire nation.” But an industry group representing PBMs that opposed the bill says the law will only drive up prescription costs even more.
“If there’s legislation that’s going to lower the cost.