Last summer, in his previous role as state auditor, Yost learned PBMs earned nearly $225 million through spread pricing between April 2017 and March 2018 while operating in Ohio Medicaid. As a result, the state canceled all PBM contracts in Medicaid that used spread pricing.
AG Yost just announced a four-part proposal and called for quick action from the state’s legislature to shine a bright light on PBM contracts and cut down on hidden cash flows. Yost’s proposal calls for:
- Drug purchases in the state to be conducted under a master PBM contract that is administered by a single contact point
- Ohio’s Auditor of State to have full power to review all PBM contracts, purchases and payments
- PBMs to operate as fiduciaries, uh-oh!
- The state to prohibit nondisclosure agreements on drug pricing.
So, what is the difference between a fiduciary PBM and one that isn’t? Watch the video below to learn for yourself.