| Last Action | 03/11/21: recommitted to Appropriations & Revenue (H) |
|---|---|
| Title | AN ACT relating to pharmacy benefit managers. |
| Bill Documents | Introduced |
| Fiscal Impact Statement | Fiscal Note |
| Bill Request Number | 60 |
| Sponsors | S. Sheldon, D. Bentley, A. Bowling, R. Bridges, R. Dotson, D. Frazier Gordon, R. Goforth, D. Hale, M. Hart, S. Heavrin, R. Huff, K. King, M. Koch, D. Lewis, S. Lewis, C. Massey, S. McPherson, P. Pratt, M. Prunty, B. Reed, S. Riley, B. Rowland, S. Sharp, N. Tate, W. Thomas, J. Tipton, K. Upchurch, R. Webber |
| Summary of Original Version | Create a new section of Subtitle 12 of KRS Chapter 304 to prohibit certain practices of pharmacy benefit managers; allow audits of contracts entered with pharmacy benefit managers; require certain disclosures relating to contracts with pharmacy benefit managers; require pharmacy benefit managers to file an annual report with the commissioner of insurance; provide that confidential or proprietary information disclosed to the Department of Insurance shall not be subject to disclosure under the Open Records Act; prohibit pharmacy benefit managers from sharing certain pharmacy records with pharmacy affiliates; authorize the commissioner of insurance to promulgate regulations relating to pharmacy benefit managers; amend KRS 304.17A-708, 304.17A-712, and 304.17A-714 to conform; provide for severability; require the commissioner of insurance to promulgate regulations to implement the Act on or before January 1, 2022; EFFECTIVE, in part, January 1, 2022. |
| Index Headings of Original Version |
Fiscal Note - Pharmacy benefit managers, regulation Drugs and Medicines - Pharmacy benefit managers, regulation Effective Dates, Delayed - Pharmacy benefit managers, regulation, January 1, 2022 Federal Laws and Regulations - Federal law, pharmacy benefit managers, exemptions Insurance, Health - Pharmacy benefit managers, regulation Pharmacists - Pharmacy benefit managers, regulation Administrative Regulations and Proceedings - Commissioner of Insurance, pharmacy benefit managers, regulation Reports Mandated - Commissioner of Insurance, pharmacy benefit managers, annual report |
| Jump to Proposed Amendments | House Committee Substitute 1 |
| 02/22/21 |
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| 02/23/21 |
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| 02/25/21 |
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| 02/26/21 |
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| 03/11/21 |
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| Amendment | House Committee Substitute 1 |
|---|---|
| Summary | Retain original provisions, except specify that contracts with pharmacy benefit managers and a pharmacy or pharmacist, either directly or through a pharmacy services administration organization, shall prohibit certain practices; prohibit paying or reimbursing a pharmacy or pharmacist less than the national average drug acquisition cost or wholesale acquisition cost; prohibit creating, modifying, implementing, or establishing any fee on a pharmacy, pharmacist, or insured without prior approval from insurance commissioner, prohibit pharmacy benefit managers from requiring insureds to use a mail-order pharmaceutical distributor or a mail-order pharmacy; require contracts between an insurer or third-party payor and a pharmacy benefit manager to provide that the pharmacy benefit manager shall owe a fiduciary duty to the insurer or third-party payor; prohibit pharmacy benefit managers from utilizing any form of spread pricing. |
| Index Headings |
Effective Dates, Delayed - Pharmacy benefit managers, regulation, January 1, 2022 Federal Laws and Regulations - Federal law, pharmacy benefit managers, exemptions Insurance, Health - Pharmacy benefit managers, regulation Pharmacists - Pharmacy benefit managers, regulation Administrative Regulations and Proceedings - Insurance commissioner, pharmacy benefit managers, regulation Reports Mandated - Insurance commissioner, pharmacy benefit managers, annual report Drugs and Medicines - Pharmacy benefit managers, regulation |
Last updated: 11/9/2023 2:52 PM (EST)