Attorney General Gentner Drummond led a group of 45 attorneys general on April 15 in urging the U.S. Department of Labor to adopt a new rule that would require pharmacy benefit managers to be more transparent about how they set prescription drug prices.
The move comes as many employers and their employees face rising prescription drug costs, with little understanding of how those prices are determined. Pharmacy benefit managers (PBMs) manage drug benefits for health insurers and employer health plans, negotiating rebates with manufacturers and deciding which drugs are covered. About 136 million Americans receive health coverage through an employer.
Under the proposed rule, PBMs would have to disclose twice a year how they generate revenue and allow employers to audit them. “When Oklahomans and their employers are paying more for prescription drugs, they deserve to understand why,” Drummond said. “This rule would bring much-needed clarity to a complex system and give employers the tools to make better decisions for the people they cover. I’m proud to lead this effort alongside attorneys general from across the country.”
The coalition’s letter also asks the Department of Labor for two additional protections: clarifying that federal rules do not override existing state PBM transparency laws, and committing to coordinate enforcement with state attorneys general by referring potential violations of state law.
The Oklahoma Attorney General’s PBM Compliance and Enforcement Unit has already taken steps such as securing a $32 million settlement for the state employee health plan and reaching agreements returning improperly recouped payments to pharmacies. These actions reflect broader trends nationwide; all states, Washington D.C., and Puerto Rico have enacted regulations on PBMs—including limits on out-of-pocket costs, bans on “gag clauses,” and protections for independent pharmacies.
Drummond heads the Oklahoma Attorney General’s office leveraging extensive legal experience according to his official biography. The office focuses on combating crime, ensuring government transparency, strengthening tribal relations, upholding the rule of law, supporting energy sector policies, educational safeguards, tougher crime laws—including those addressing rape and drug distribution—and collaborates with federal partners against organized crime according to its official biography. The agency operates within public legal services in Oklahoma as noted in leadership background.