Staten Island Reporter

Congresswoman Nicole Malliotakis, a member of the House Committee on Ways and Means, announced today that her legislative language aimed at reducing prescription drug costs and expanding telehealth services for mental health appointments has successfully passed out of the full committee. The bill received bipartisan support and will be included in the committee's Preserving Telehealth, Hospital, and Ambulance Access Act.

Malliotakis introduced this legislation in collaboration with Reps. Buddy Carter (R-GA) and Lisa Blunt-Rochester (D-DE). The bill proposes to delink Pharmacy Benefit Manager (PBM) compensation from medication costs and increase price transparency. This move aims to protect small pharmacies while reducing prescription drug prices for consumers. It is estimated that this policy could save taxpayers approximately $700 million and help decrease seniors' out-of-pocket drug expenses.

"When it comes to PBMs, there’s little to no transparency on their practices, and they’re making a lot of money by charging inflated prices for medicine, pocketing the profits and dictating what their competitors are able to make in the process," Malliotakis stated. "Because of this, ‘mom & pop’ pharmacies in my district are being crushed, and the inflated costs are being passed down to consumers."

Dr. Mayank A. Parikh from Super Health Pharmacy in Pleasant Plains, Staten Island expressed gratitude towards Congresswoman Malliotakis for taking action against PBMs who he described as running a monopoly.

"PBM's and their hidden practices have put many small pharmacies out of business," said Dr. Shifa Fozi from Neugard Pharmacy in Bay Ridge, Brooklyn. "We are grateful that Congresswoman Malliotakis is willing to hold them accountable."

The proposed legislation also includes language introduced by Malliotakis alongside Rep. Kevin Hern (R-OK) and Susie Lee (D-NV), which would remove in-person requirements for behavioral health services delivered via telehealth.

"The utilization of telehealth services has only increased since the pandemic," Malliotakis added. "In a post-pandemic world where more than 20% of Americans, including more than three million New Yorkers, are battling mental health issues, we should be doing everything we can to continue expanding access to this critical care."

The Preserving Telehealth, Hospital, and Ambulance Access Act also aims to preserve patients' access to home care by removing in-person requirements and geographic restrictions. It plans to sustain access to hospitals and emergency services in urban, rural, and super-rural areas through FY25 and offset spending through new payment and reporting systems.