Following an enormous cyberattack on a subsidiary of UnitedHealth Group, the Senate Finance Committee has called the company’s CEO, Andrew Witty, to testify on April 30th. The hackers stole millions of medical records, which reflects badly on the company’s ability to protect patients.
But while members of Congress are grilling Witty about the cybersecurity breach, they should also question him on other ways his company harms patients. Legislators should start with demanding clarity on the industry middlemen known as pharmacy benefit managers, or PBMs, one of the largest of which is owned by UnitedHealth Group.
PBMs negotiate drug prices with drug manufacturers on behalf of insurers. One might expect this leads to lower costs for patients, but because of misaligned incentives, it actually does the opposite.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Congress Has A Big Chance To Investigate A Financial Threat To Patients
Sally C. Pipes
Following an enormous cyberattack on a subsidiary of UnitedHealth Group, the Senate Finance Committee has called the company’s CEO, Andrew Witty, to testify on April 30th. The hackers stole millions of medical records, which reflects badly on the company’s ability to protect patients.
But while members of Congress are grilling Witty about the cybersecurity breach, they should also question him on other ways his company harms patients. Legislators should start with demanding clarity on the industry middlemen known as pharmacy benefit managers, or PBMs, one of the largest of which is owned by UnitedHealth Group.
PBMs negotiate drug prices with drug manufacturers on behalf of insurers. One might expect this leads to lower costs for patients, but because of misaligned incentives, it actually does the opposite.
Click to read the full article in Forbes.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.