U.S. Virgin Islands – V.I. Attorney General Gordon C. Rhea today joined Arkansas Attorney General Tim Griffin, Massachusetts Attorney General Andrea Joy Campbell, Missouri Attorney General Andrew Bailey, Vermont Attorney General Charity R. Clark, and a coalition of 34 other state and territory attorneys general in sending a letter to congressional leadership urging them to pass an act that would prohibit pharmacy benefit managers (PBMs) from owning or operating pharmacies.
“Pharmacy benefit managers were meant to serve as intermediaries to help manage drug costs, but instead, they’ve used their position to dominate the marketplace and crush independent pharmacies,” said Attorney General Rhea. “It’s time for Congress to act decisively and prohibit PBMs from owning or operating pharmacies. This change is essential to protect small businesses and ensure consumers have fair access to affordable medications.”
PBMs are third-party administrators of prescription drug programs for health plans. Over the past few decades, horizontal consolidation and vertical integration have transformed PBMs from useful administrative service providers into market-dominating behemoths that control the industry. Each of the top six PBMs operate their own affiliated pharmacies, while five of the top six are also a part of parent conglomerates that operate insurance companies and health care clinics. PBMs—through ownership of affiliated pharmacies—are contracting with and have power over their own pharmacies’ competition. The PBMs then use their place as middlemen to exert this power in ways that harm independent pharmacies, forcing these small businesses to accept contractual terms that are confusing, unfair, arbitrary, and harmful.
The letter sent today urges Congress to take action and protect consumers by enacting a law prohibiting PBMs or their parent companies from owning a pharmacy.
In addition to Attorney General Rhea, the Attorneys General of the following states and territories also signed on to the letter sent by Arkansas, Massachusetts, Missouri, and Vermont: Alaska, American Samoa, Arizona, California, Delaware, District of Columbia, Hawaii, Illinois, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
The letter is attached here.
FOR IMMEDIATE RELEASE
April 14, 2025
Sandra Goomansingh
Media Relations Director
(340) 774-5666 ext. 10105
Email: sandra.goomansingh@doj.vi.gov