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STEVE: WE BEGIN TONIGHT WITH A KCCI 8 NEWS EXCLUSIVE. STATE AUDITOR ROB SAND ANNOUNCED PLANS TODAY TO AUDIT THE PRESCRIPTION BENEFITS MANAGERS THAT SERVE IOWA’S MEDICAID PROGRAM. STACEY: ONE WEEK AGO TODAY, OUR TODAY, OUR KCCI INVESTIGATION FIRST SHOWED YOU THE NUMBERS ONE LAWMAKER AND PHARMACIST FOUND THAT CAUSED ALARM. KCCI’S INVESTIGATIVE REPORTER ALEX SCHUMAN IS LIVE AT THE STATEHOUSE WITH WHAT HAPPENS NEXT ALEX: AUDITOR ROB SAND SAT DOWN WITH US TO TALK ABOUT TH AUDIT. HE WANTS TO KNOW IF IOWA TAXPAYERS ARE GETTING OVER-CHARGED FOR PRESCRIPTION MEDICATIONS. >> WE ARE PAYING MORE THAN WHAT WE NEED TO PAY FOR THE DRUGS THAT WE’RE GETTING. ALEX: AUDITOR ROB SAND IS MOVING FORWARD WITH A PLAN TO AUDIT WHAT ARE CALLED PRESCRIPTION BENEFITS MANAGERS OR PBMS THAT HANDLE PRESCRIPTION DRUGS FOR STATE MEDICAID INSURANCE COMPANIES. PBMS ARE SUPPOSED TO SAVE THE STATE MONEY, BUT THERE’S CONCERN THEY COULD BE DOING TH OPPOSITE. >> THE MIDDLE-MAN SELLS YOU A FORD, BUT THEN CHARGES THE STATE FOR A FERARI. ALEX: KCCI FIRST SHOWED YOU THE NUMBERS IN AN EXCLUSIVE INVESTIGATIO PHARMACIST AND IOWA LAWMAKER JOHN FORBES COMPARED THE AMOUNT HIS PHARMACY WOULD BE PAID FOR PRESCRIPTIONS WITH THE AMOUNT THE STATE’S INSURANCE COMPANIES WERE CHARGED. IN ONE EXAMPLE, FORBES FOUND HIS PHARMACY RECEIVED $68.44 THE PBM CHARGED IOWA TAXPAYERS $247.58 FOR THAT SAM PRESCRIPTION, AN INCREASE OF 261% SAND WANTS TO SEE IF THE PROBLEM IS SYSTEM-WIDE, DESPITE SENATE REPUBLICANS SAYING THE PROBLEM DOES NOT EXIST AFTER LOOKING INTO FORBES’ CLAIM >> TALKED TO A LOT OF PEOPLE ABOUT THIS COM OUT AND THAT ALL THE WAY TO LOOK INTO IT. >> WHEN SENATOR COSTELLO WAS TOLD WE DIDN’T NEED TO LOOK INTO THIS HE WAS GETTING THAT INFORMATION FRO, ONE OF THE MCO’S THAT WAS OPERATING IN THE STATE ALREAD I’M NOT SURE THEY WOULD BE THE FOLKS TO TRUST ON THAT. ALEX: GOVERNOR KIM REYNOLDS THINKS AN INVESTIGATION WILL PROVE LEADERS HAVE THE RIGHT INFORMATION. >> I THINK IT’S ALWAYS OK TO TAKE A LOOK AT THAT TO MAKE SURE WE HAVE THE RIGHT INFORMATION, THAT WE’RE NOT BEING TAKEN ADVANTAGE OF, THAT THEY’RE NOT PRICE GOUGING. ALEX: SAND IS NOT SURE HOW LONG THE INVESTIGATION WILL TAKE, BUT PLANS TO LOOK AT BOTH THE PBMS AND WHETHER THE STATE COULD DO SOMETHING DIFFERENTLY TO PREVENT POSSIBLE OVER-CHARGING. >> IT’S SOMETHING THAT I THINK ANYONE WHO’S CONCERNED ABOUT TAXPAYER MONEY SHOULD BE WANTING US TO DIG INTO. ALEX: OTHER STATES HAVE DONE SIMILAR AUDITS. OHIO FOUND THEIR STATE MEDICAID PROGRAM WAS OVER-CHARGED BY $200 MILLION BY PRESCRIPTION BENEFITS MANAGERS. THE FEDERAL TRADE ASSOCIATION CLAIMS TO HELP SAVE MEDICAID IN IOWA $254 MILLION. LIVE AT THE STATEHOUSE. ALEX SCHUMAN. KCCI

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State Auditor Rob Sand announced Thursday a plan to audit the pharmacy benefit managers, or PBMs, that serve Iowa’s Medicaid program. KCCI first showed you how an Iowa legislator warned that the state of Iowa is overpaying for certain generic medications. “We are paying more than what we need to pay for the drugs that we’re getting,” Sand said. PBMs handle prescription drugs for state Medicaid insurance companies. They’re supposed to save the state money, but there’s concern they could be doing the opposite. Sand said it’s analogical to when a “middle man sells you a Ford but then charges the state for a Ferrari.” State Rep. John Forbes, who is also a pharmacist, compared the amount his pharmacy would be paid for prescription with the amount the state’s insurance companies were charged. In one example, Forbes found his pharmacy received $68.44. Then PBMs charged Iowa taxpayers $247.58 for the same prescription – a 261 % increase. Sand said he wanted to see if the problem is systemwide, despite Senate Republicans saying the problem does not exist after looking into Forbes’ claims. “When Sen. (Mark) Costello was told we didn’t need to look into this, he was getting that information from one of the (managed care organizations) that was operating in the state already,” Sand said. “I’m sure they would be the folks to trust on that.” Iowa Gov. Kim Reynolds said she thinks an investigation will prove leaders have the right information. RELATED: KCCI investigates: Are you overpaying for prescription drugs?“I think it’s always OK to take a look at that to make sure we have the right information, that we’re not being taken advantage of, that they’re not price-gouging,” she said. It’s unclear how long the investigation will take, but Sand plans to look at PBMs and whether the state could do something different to prevent possible overcharging. “It’s something that, I think, anyone who’s concerned about taxpayer money should be wanting us to dig into,” Sand said.Other states have done similar audits. Ohio found its state Medicaid program was overcharged by $200 million by PCMs. The trade association for PBMs claims to help save Medicaid in Iowa $254 million.