Lori Chavez-DeRemer. Credit: DeRemer

President-elect Donald Trump has picked a nominee for U.S. Labor secretary who has supported tighter regulation of pharmacy benefit managers.

If the nominee, Rep. Lori Chavez-DeRemer, R-Ore., is confirmed by the Senate, she could end up overseeing the Employee Benefits Security Administration, a Labor Department arm that regulates employer-sponsored health plans and employer-sponsored retirement plans.

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"Lori has worked tirelessly with both Business and Labor to build America's workforce, and support the hardworking men and women of America," Trump wrote in a post on the Trust Social social media services. "Lori's strong support from both the Business and Labor communities will ensure that the Labor Department can unite Americans of all backgrounds behind our Agenda for unprecedented National Success — Making America Richer, Wealthier, Stronger and more Prosperous than ever before!"

One focus for Chavez-DeRemer would be manufacturing training and apprenticeship programs, Trump said.

Trump did not mention health plans or pharmacy benefits in the post.

The history: Chavez-DeRemer has been representing Happy Valley, Oregon, a suburb of Portland, in the U.S. House since 2023. She was up for reelection Nov. 5 and lost to Janelle Bynum, a Democrat.

Chavez-DeRemer has a bachelor's degree in business from California State University, Fresno.

She joined the Happy Valley city council in 2004 and served as the city's from 2011 through 2019.

Her husband, Dr. Shawn DeRemer, is an anesthesiologist who is the founder and president of Anesthesia Associations Northwest, a Portland-based anesthesia services provider.

Chavez-DeRemer and employee benefits: Since Chavez-DeRemer joined the House, she has worked on many efforts to expand workers' access to child care.

She also has introduced a resolution that would provide the "sense of the House of Representatives that in vitro fertilization... is necessary for women who cannot achieve naturally" and is one of the four lead sponsors of the Helping to Optimize Patients' Experience with Fertility Services Act bill. The HOPE Act bill would require group health plans, including self-insured employer health plans, to cover fertility services who suffer from infertility because they have gone through chemotherapy or other procedures that affect fertility.

The fertility bills are still in committee.

Chavez-DeRemer's most successful bill, the Health Data Access, Transparency and Affordability Act bill, or Health DATA Act bill, would require pharmacy benefit managers, plan administrators and plan provider networks to offer the fiduciaries for employer-sponsored health plans access to the de-identified claim information they need to audit claims and cost information.

The bill would also require the Labor Department to report on health plans' ability to get the data they need to audit the claims.

The Health DATA Act bill was added to the House Lower Costs, More Transparency Act package. The Lower Costs, More Transparency Act package passed in the House in December 2023. The Senate has not taken any action on the package.

In June 2023, Chavez-DeRemer spoke at a House Education and the Workforce Committee hearing on the health care market.

She attacked the idea of some traditional pharmacy benefit managers not passing much or any of the savings from drugmakers' rebates on to the patients.

"A PBM could get a $100 rebate from a pharmaceutical company, pass along $15 to the patient and pocket the remaining $85, meaning the insurance company is forcing a larger co-pay on a patient," Chavez-DeRemer said. "So, they can pay themselves more than if there was no rebate at all. It's really a system beating down on the patients.'

One of the witnesses, Greg Baker, the chief executive officer of Affirmed Rx, a PBM that says it provides more information about its rebate and pricing arrangements than traditional PBMs do, told her that the answer is that employers need more information.

Chavez-DeRemer followed up with a question about the trend for insurers owning PBMs and pharmacies.

"How can Congress disrupt this vertical integration in the industry, so that insurance companies can't distort our health care system and force devastating costs on what I would call vulnerable Oregonians?" Chavez-DeRemer asked.

Baker said part of the answer involves contract transparency and part involves separating PBMs' revenue fron drug acquisition and sales costs.

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Allison Bell

Allison Bell, a senior reporter at ThinkAdvisor and BenefitsPRO, previously was an associate editor at National Underwriter Life & Health. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached through X at @Think_Allison.