D.C. Dispatch: Miller-Meeks calls for PBM reform, Ernst and Grassley prepare for Trump nominees
U.S. Rep. Mariannette Miller-Meeks, R-Iowa, spoke at a news conference in Washington D.C. Dec. 3, 2024, calling for regulating financial practices of Pharmacy Benefit Managers. (Photo courtesy of Miller-Meeks office)
by Robin Opsahl, Iowa Capital Dispatch
December 6, 2024
This week in Washington D.C., Iowa’s delegation called for Congress to take action on issues like health care costs — as well as preparing for the transition of power as President-elect Donald Trump soon takes office.
Miller-Meeks pushes for pharmacy legislation
Republican U.S. Rep. Mariannette Miller-Meeks said Congress needs to pass the “Delinking Revenue from Unfair Gouging Act” — also known as the “DRUG Act,” as well as take further action to address financial hardships pharmacies face caused by Pharmacy Benefit Managers (PBMs). The PBMs, the third-party companies that negotiate medication prices between health insurance companies, drug manufacturers and pharmacies, have increasingly taken steps to lower the prices paid to pharmacies filling prescriptions, Miller-Meeks said, in order to claw back more profit.
At a news conference hosted by Rep. Buddy Carter, R-Georgia, Miller-Meeks said “the time for PBM reform is now.”
Joined by John Nicholson, the owner of Mahaska Drug in Oskaloosa, Miller-Meeks said 25 independent pharmacies have closed in Iowa in the past year, and chain pharmacies are also closing at a high rate in rural Iowa because of PBM financial practices.
“In order to maximize their profits, PBMs employ shady practices such as ‘spread pricing,’ where they charge insurers more than they reimburse pharmacies, and they pocket the difference,” Miller-Meeks said. “As a result, PBMs profit from fees that have increased more than 300%, while prescription drug prices have risen almost 40% — a rate far surpassing inflation.”
She called for Congress to take action to ban PBM practices like “spread pricing” as well as “patient steering” — encouraging or requiring patients to use specific, affiliated pharmacies instead of the pharmacy of their choosing — in order to lower health care costs for patients and keep rural and independent pharmacies in business.
“This isn’t a partisan issue, as you can see, and it is not a House-only issue — it is a bicameral issue,” she said. “Every American who utilizes prescription medications experiences the impact that PBMs and vertical integration have on our healthcare system. Patients everywhere, and our independent pharmacists especially, deserve a more transparent healthcare system where patients always come first.”
Iowa senators weigh in on Trump appointees
While Miller-Meeks aimed to wrap up legislation before the 119th Congress convenes in January, U.S. Sen. Chuck Grassley took time this week to meet with former Florida Attorney General Pam Bondi in preparation for her nomination to become attorney general in Trump’s administration.
Grassley, the incoming chairman of the Senate Judiciary Committee, will oversee Bondi’s nomination process in the upcoming session. After meeting with Bondi Monday, Grassley said the former state AG is a “well-qualified nominee” who is prepared to lead the U.S. Department of Justice.
“In my years conducting oversight of government weaponization and abuse, I’ve found that the Justice Department is often the first to stand in Congress’ way when it’s seeking answers,” Grassley said in a statement. “It’s time the DOJ prioritize transparency and recommit itself to blind justice, unlike what we’ve seen over the last four years. To achieve this, Bondi will need to show unfailing support for whistleblowers, demonstrate respect for the DOJ Office of Inspector General’s independent oversight and commit to working with Congress to shed light on the Biden administration’s weaponization of the DOJ.”
The longtime senator said the Judiciary Committee will “move swiftly” to consider her nomination in January.
Trump announced his intent to nominate Bondi for the position after his previous pick, former U.S. Rep. Matt Gaetz, R-Florida, withdrew his bid for the appointment in late November. Gaetz’s appointment to the position was controversial as he faced investigations about alleged payments for sex, including with an underage girl, and drug use. Though the incoming Senate will have a GOP majority, the Florida Republican’s confirmation seemed unlikely.
Grassley posted on the social media platform X that “I respect Gaetz decision &look fwd 2helping PresTrump confirm qualified noms 2reform Dept of Justice &bring TRANSPARENCY/ACCOUNTABILITY Trump’s mission = DRAIN THE SWAMP& I would add get some1 who will answer my hundreds of outstanding oversight letters sitting at Biden DOJ/FBI.”
Iowa’s junior senator, U.S. Sen. Joni Ernst, will also play an important role in confirming a Trump nominee in January as the incoming chair of the Senate Small Business Committee. On Thursday, Ernst released a statement supporting the president-elect’s announcement that he would appoint former U.S. Sen. Kelly Loeffler, R-Georgia, to serve as administrator of the Small Business Administration.
Loeffler was appointed to the Senate in 2020 by Georgia Gov. Brian Kemp after former Sen. Johnny Isakson retired over health concerns. She lost to current Sen. Raphael Warnock, a Democrat, in the 2021 runoff election. In Congress, she was a staunch ally of Trump and one of the wealthiest lawmakers in Congress — she previously served as chief executive officer of Bakkt, a subsidary of the financial service provider Intercontinental Exchange, of which her husband Jeffrey Sprecher is CEO.
As Loeffler is a business owner, Ernst said she was “confident that (Loeffler) will fight to get Washington bureaucrats off the backs of our nation’s small businesses.”
“President Trump has made a wise choice by tapping former Senator Kelly Loeffler to lead the Small Business Administration,” Ernst said in a statement. “… I look forward to a swift confirmation process so that we can work together to cut the red tape, restore the American Dream for entrepreneurs, and bring accountability to a federal agency that has been reckless with taxpayer dollars.”
Iowa Capital Dispatch is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Iowa Capital Dispatch maintains editorial independence. Contact Editor Kathie Obradovich for questions: info@iowacapitaldispatch.com. Follow Iowa Capital Dispatch on Facebook and X.
