Oct. 12, 2023

HARRISBURG – Rep. Jonathan Fritz (R-Susquehanna/Wayne) today praised Auditor General Timothy L. DeFoor’s announcement that his office will conduct a performance audit of state contracts and oversight of Pharmacy Benefit Managers (PBMs) used by the Pennsylvania Department of Human Services’ (DHS) HealthChoices Medicaid Program.

“I am very pleased we are going to see action that will bring accountability to pharmacy benefit managers,” said Fritz. “Our seniors and our taxpayers deserve to see that their dollars are being used responsibly and as conservatively as possible. I have long advocated for greater transparency and accessibility, which is why I introduced legislation to ensure these tax dollars are being handled prudently.”

Pharmacy Benefit Managers develop and maintain pharmacy provider networks through contracts with pharmacies. DHS’s HealthChoices Medicaid Program uses these contracts. 

“Both the Shapiro Administration and the Legislature have asked us to take a closer look to make sure these contracts are being followed and there are no hidden fees being passed onto taxpayers,” DeFoor said. “We need to make sure that everyone in the process, from the patient to the pharmacy to DHS, knows exactly how much is being charged, who is paying the bill, and that the contracts designed to protect us are being followed. This is a significant issue with major financial implications, which is why we are taking the extraordinary step of discussing it as the audit gets underway.”

During the 2021-22 Legislative Session, Fritz introduced a bill calling for increased transparency by ensuring managed care contracts and subcontracts by the Department of Human Services be made fully available for audits by the Office of Auditor General. That bill was later signed into law by former Gov. Tom Wolf as Act 98 of 2022.

According to DeFoor, the audit will take 12-18 months to complete.

Representative Jonathan Fritz
111th Legislative District
Pennsylvania House of Representatives