Alabama employers across diverse industries have joined together to urge Congress to reject government interference in the private health care marketplace, specifically calling out Big Pharma-backed policies that would undermine pharmacy benefit managers (PBMs) and drive-up health care costs for hardworking families.
In recent letters, employers have warned that dangerous proposals — some of which have been included this week as part of a minibus package being considered in Congress — would represent a massive handout to drug companies at the expense of employers, workers and their families (similar provisions were included back in 2024, and shot down by the President).
“Heavy-handed government involvement in our private health insurance market backed by big drug companies would drive up health care costs, reduce competition and boost drug company profits at the expense of employers, employees and their families,” the employers wrote.
The signatories, ranging from small business owners to CEOs of regional firms, represent businesses across multiple sectors including healthcare, technology, agriculture and financial services.
A massive bailout disguised as reform
The employers’ concerns may indeed be well-founded. The minibus provisions included would interfere directly in the private marketplace by restricting the negotiating tools that employers depend on to secure affordable coverage. These restrictions would effectively hand drug companies a massive bailout while gutting the savings that keep premiums manageable.
According to independent analysis cited in the letter, policies targeting PBM-negotiated rebates and market-based tools would increase health care premiums up to $26 billion annually in the commercial market while raising drug company profits up to a whopping $22 billion. For employers already struggling with rising costs, this is untenable.
“We cannot afford an increase to our premiums,” the employers stated firmly. “We cannot take savings away from employers and consumers and give it to the pharmaceutical industry.”
Voters strongly oppose government meddling
Public opinion is clearly aligned with these Alabama employers. A recent survey conducted by Trump pollster and longtime advisor to the President, John McLaughlin, found that across ideological and political divides, voters strongly support protecting employer choices in the private health care marketplace over government interference.
The survey data reveals a consistent message: voters overwhelmingly oppose government overreach in private health insurance. Specifically, voters reject proposals that would require pharmacy benefit managers and insurance companies to pass all savings negotiated from drug companies directly to employers in the private marketplace, instead of to consumers at the pharmacy counter.
Instead, likely voters across the political spectrum strongly support keeping the option for employers to choose to pay PBMs based on their performance in negotiating lower prescription drug costs — a market-based approach that rewards efficiency and savings.
Employers know best
The Alabama employers emphasized in their letter that as “leaders responsible for providing health coverage to millions of American workers and families,” they understand firsthand how critical PBMs are to controlling costs.
“Employers depend on PBMs to negotiate directly with drug manufacturers, secure rebate savings and provide choice in benefit design,” they wrote. “Heavy-handed government intervention to eliminate these options would only make it harder for us to offer affordable, comprehensive coverage while jeopardizing the critical savings PBMs secure on our behalf.”
With 449,024 small business employers in Alabama playing vital roles in their communities and the state’s economy, the stakes are high. These businesses cannot afford to lose the tools that keep their health insurance costs manageable.
As Senator Tuberville has stated, “We need to adjust a lot of things, but we have to get the federal government out of our healthcare because everything the federal government touches, whether it’s air traffic controllers, education, health care, something always goes wrong.”
The Alabama employers are essentially asking Congress to heed this wisdom. Rather than imposing rigid government mandates that would ultimately benefit pharmaceutical companies at the expense of working families, Congress should allow the private market to continue functioning as it has — with employers and PBMs negotiating directly for the best possible prices and coverage options.
The bottom line
Alabama employers have made their position crystal clear. They’re asking Congress to reject misguided government mandates in the private health care market that would take savings away from patients and families and hand them over to the pharmaceutical industry.
